Abu Dhabi plans to sell its second benchmark-size bond to help develop debt markets in the country, an official at the Abu Dhabi Stock Exchange said on Tuesday.

'There is co-ordination and talks between us and government entities in Abu Dhabi for the issuing of the government bonds,' said Rashed al-Baloushi, deputy chief executive officer at ADX, after unveiling a five-year plan for the stock exchange.

'The bonds would be issued by the government as a benchmark.' A benchmark is generally considered to be about $500 million.

Baloushi told reporters the government had still to decide the size and declined to give a timeframe. 'We are creating a debt market...a comprehensive one,' Baloushi said.

'There'll be more liquidity and shareholders will have new pools of investment.' The sale is one of a growing number in the Gulf in recent weeks, marking a spike in issuance following a lull when firms shelved bond plans after defaults on US home loans raised the cost of borrowing, triggering a credit crunch.

The UAE's commercial hub Dubai and the northern emirate of Ras al-Khaimah have already sold bonds this year.

Bankers say sovereign bonds make corporate issuance easier by providing a benchmark against which pricing can be compared. In July, Abu Dhabi sold a $1 billion dollar-denominated bond.-Reuters