Abu Dhabi’s Department of Finance successfully issued $5 billion worth of dollar-denominated bonds through three tranches. The issuance received positive feedback from investors, indicating their confidence in the emirate’s credit standing and economic development strategy.
The bonds included three tranches: $1.75 billion for 5 years with a return of 4.875%, $1.5 billion for 10 years with a return of 0.5%, and $1.75 billion for 30 years with a return of 5.5%. The subscription was oversubscribed by 4.8 times, with the bond yield representing a margin higher than US Treasury bonds.
Despite being located in the CEEMEA region, Abu Dhabi achieved the lowest pricing margin ever for bonds with maturities of 5, 10, and 30 years, reflecting investor confidence in its financial stability and economic growth potential. The bonds received an AA rating from Standard & Poor’s and Fitch, further enhancing their appeal to investors globally.
Chairman Jassim Mohammed Buataba Al Zaabi emphasized the strong demand from global investors and the conservative management of debt and liquidity, which contributed to the successful issuance of these bonds. The issuance was managed by a group of lead managers, demonstrating Abu Dhabi’s commitment to maintaining its financial stability and attracting foreign investment.
In conclusion, the successful issuance of these bonds by Abu Dhabi reflects investor confidence in its financial stability and long-term outlook for growth. This achievement will undoubtedly enhance the emirate’s reputation as a reliable partner for international investment opportunities in both finance and other sectors.
In summary, Abu Dhabi’s Department of Finance successfully issued $5 billion worth of dollar-denominated bonds through three tranches that were oversubscribed by four times due to high demand from global investors