Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

Abu Dhabi Issues $10 Billion Multi-tranche Bonds

Abu Dhabi Issues $10 Billion Multi-tranche Bonds

Monday, 7 October, 2019 - 05:15
FILE PHOTO: General view of Abu Dhabi, United Arab Emirates, January 3, 2019. Picture taken January 3, 2019. REUTERS/ Hamad I Mohammed/File Photo

Abu Dhabi announced Sunday that it has successfully priced a US$10 billion multi-tranche international bond offering, Emirates News Agency (WAM) reported.

The September transaction comprised three tranches: (i) US$3 billion, 2.125 percent, due in 2024, which priced at 65 bps over US Treasuries; (ii) US$3 billion, 2.500 percent, due in 2029, which priced at 85 bps over US Treasuries; and (iii) US$4 billion, 3.125 percent, due in 2049, which priced at 110 bps over US Treasuries, it said.

According to the news agency, the bonds were well received in the international debt capital markets, with the order book peaking at over US$25 billion with orders coming from over 650 unique accounts.

Jassem Mohamed Bu Ataba AlZaabi, the Chairman of the Department of Finance Abu Dhabi, said: "The success of the issuance is a testament of investor confidence in the Government of Emirate of Abu Dhabi’s economic and political stability and the strong credit story.”

“We are pleased to witness the achievement of the lowest ever coupons by the Government of Emirate of Abu Dhabi since the debut issuance in 2007.”

The final allocation for the bonds stood at 78 percent from international investors, and 22 percent from Middle East investors.

Editor Picks