The Department of Finance – Abu Dhabi announced the successful completion of the issuance of dollar-denominated bonds (Eurobonds) worth $5 billion, through three tranches. The issuance received a large response, reflecting investors’ confidence in the emirate’s solid credit standing and its continued efforts to achieve the goals of Abu Dhabi’s comprehensive economic development strategy.
The issuance included bonds worth $1.75 billion for 5 years with a return of 4.875%, bonds worth $1.5 billion for 10 years with a return of 0.5%, and bonds worth $1.75 billion for 30 years with a return of 5.5%. %.
The bond yield represents 35 basis points higher than 5-year US Treasury bonds, 45 basis points higher than 10-year bonds, and 90 basis points higher than 30-year bonds, and the subscription was covered by 4.8 times. The margin price achieved by the Emirate of Abu Dhabi represents the lowest margin price ever achieved by the Emirate, in addition to being the lowest price achieved by any bond issuer in the Central and Eastern Europe, Middle East and Africa (CEEMEA) region for issues with maturities of 5, 10 and 30. year, which reflects the high confidence of investors in the Emirate of Abu Dhabi, even during periods of volatility such as those currently witnessed by the capital markets.
The bonds of the Emirate of Abu Dhabi received an AA rating from the credit rating agencies Standard & Poor’s and Fitch.
Jassim Mohammed Buataba Al Zaabi, Chairman of the Department of Finance – Abu Dhabi, said: “This issuance received strong demand from global investors, and is in line with our approach and philosophy for the conservative and optimal management of debt and liquidity in the long term, which is reflected in the level of credit rating (AA) that our bonds obtained.” . The outstanding investor demand for these bonds, in addition to achieving the lowest pricing margin ever recorded by an issuer in the Central and Eastern Europe, Middle East and Africa region, is a testament to global investors’ confidence in the financial stability of the Emirate of Abu Dhabi, coupled with a positive long-term outlook.”
The bond issuance process was managed by a group of lead managers and subscription managers, including: Abu Dhabi Commercial Bank, Citi, First Abu Dhabi Bank, HSBC, JP Morgan, Morgan Stanley, and Standard Chartered Bank.