Abu Dhabi Successfully Issues $5 Billion in Bonds, Attracting Investor Confidence with Lowest Pricing Margin in Region

The Department of Finance in Abu Dhabi has successfully completed the issuance of $5 billion worth of dollar-denominated bonds through three tranches. This issuance was met with positive responses from investors, indicating their confidence in the emirate’s credit standing and economic development strategy.

The bonds consisted of three tranches: $1.75 billion for a 5-year maturity with a return rate of 4.875%, $1.5 billion for a 10-year maturity with a return rate of 0.5%, and $1.75 billion for a 30-year maturity with a return rate of 5.5%. Despite being oversubscribed by 4.8 times, the bond yield represented a margin higher than US Treasury bonds, further indicating investor confidence in Abu Dhabi’s financial stability.

What sets this issuance apart is that it achieved the lowest pricing margin ever in the CEEMEA region for bonds with maturities of 5, 10, and 30 years, reflecting investor confidence in the emirate’s creditworthiness and long-term outlook. Both Standard & Poor’s and Fitch granted an AA rating to these bonds, adding to investor confidence in the issuance’s success.

Chairman Jassim Mohammed Buataba Al Zaabi emphasized that the strong demand from global investors and conservative management of debt and liquidity were instrumental factors in this successful outcome. The issuance was managed by a group of lead managers, further demonstrating confidence in Abu Dhabi’s financial stability.

In conclusion, this successful bond issuance by Abu Dhabi highlights investor confidence in its financial stability and long-term economic growth prospects, which bodes well for its future as one of the world’s major oil producers and trading hubs.