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The Globe and Mail

Dubai attracts investor interest with $500-million bond

The Burj Dubai, the world's tallest tower, is pictured during its opening ceremony on January 4, 2010 in Dubai, United Arab Emirates.

Martin Rose/Getty Images/Martin Rose/Getty Images

Dubai's government says it has issued a $500-million (U.S.) bond, attracting strong investor interest in the onetime Gulf boomtown after its crippling debt crisis.

A statement issued Thursday says the 10-year bond was three times oversubscribed at a yield of 5.59 per cent. Last year Dubai issued a five-year bond issued at 6.7 per cent.

Dubai is still trying to climb out of a debt crunch that led to cancellation or delays in many projects and required a $10-billion bailout from its oil-rich neighbour Abu Dhabi.

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Despite the sharp construction slump, Dubai last year finished the world's tallest building, the Burj Khalifa.

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