Business & Finance Club - Dubai : Dubai's government plans to issue up to $1 billion in bonds with a tenor of up to seven years, two sources said yesterday, the emirate's first such issue since its debt crisis erupted late last year.

The bond may come as early as next week, said one source familiar with the matter and one banker.

HSBC and Standard Chartered were among the mandated banks, the banking source said. A Dubai government spokeswoman declined to comment.

Dubai has held what it said were two non-deal roadshows, one in June for European fixed-income investors, and one in August in Asia.

It launched a $6.5bn bond programme last October, made up of $4bn worth of euro-denominated medium-term notes and a $2.5bn Islamic loan. Last year, Dubai surprised global markets with a request to delay debt payments linked to its flagship conglomerate Dubai World.

Earlier in September, Dubai World reached a formal deal to restructure almost $25bn of liabilities.

Unlike the oil-producing emirate of Abu Dhabi, Dubai has no sovereign rating, which analysts have said could make it difficult to issue debt at a reasonable price.