HSBC to sell mortgage-backed bonds

HSBC Holding Plc is planning what it says will be the first sale mortgage-backed bonds in the Middle East to raise $67 million for a commercial tower in Dubai, a bank spokesman said on Sunday.Arabian Real Estate Investment Trust (AREIT), a joint venture between HSBC and Dubai-based Daman Securities, will sell securities backed by mortgages at the Al-Thuraya 2 commercial tower in Dubai Media City, the spokesman said.AREIT will make presentations to investors in the Gulf on Monday and in Europe next week. Pricing is expected on July 2 with settlement on July 9, the spokesman said.

The UAE's first securitisation was a $350 million bond sold in 2005 by Emirates National Securitization Corp. The bond was backed by a cash deposit and so is not considered a real securitisation. Source