The Department of Finance – Abu Dhabi recently completed the issuance of dollar-denominated bonds (Eurobonds) valued at $5 billion, divided into three tranches. The issuance was met with a strong response from investors, highlighting their confidence in Abu Dhabi’s creditworthiness and commitment to its economic development goals.
The bonds included $1.75 billion for a 5-year term with a 4.875% return, $1.5 billion for a 10-year term with a 0.5% return, and $1.75 billion for a 30-year term with a 5.5% return. These yields were slightly higher than comparable US Treasury bonds, but the subscription was oversubscribed by 4.8 times, showing high demand.
The bonds received an AA rating from credit rating agencies Standard & Poor’s and Fitch, further solidifying investor confidence in Abu Dhabi’s financial stability. Jassim Mohammed Buataba Al Zaabi, Chairman of the Department of Finance – Abu Dhabi, emphasized the importance of the issuance in managing debt and liquidity effectively for long-term stability.
The issuance 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. The success of the issuance, with the lowest pricing margin ever achieved in the CEEMEA region, demonstrates global investors’ confidence in Abu Dhabi’s financial future.