A dollar bond sale by Saudi-backed Gulf International Bank (GIB) was pulled after Dubai said it was seeking to delay repayment on billions of debt owed by its two flagship firms, sources said on Thursday. The five-year bond for GIB, with an expected deal size of $500 million, was due to close on Wednesday but pricing failed to go ahead after Dubai's shock announcement. “Dubai is a massive event and we decided it would be prudent to postpone the GIB deal,” said a syndicate member at one of the arranging banks. The Saudi Arabian Monetary Agency and the Public Investment Fund of Saudi Arabia own a combined stake of over 97 percent in Bahrain-based GIB. The deal was arranged by GIB, HSBC, UBS and Barclays. Dubai said on Wednesday it wanted creditors of Dubai World and property group Nakheel to agree a debt standstill as it restructures Dubai World, the conglomerate that spearheaded the emirate's breakneck growth. The announcement triggered widespread concern.
