Abu Dhabi’s $5 Billion Bond Issuance: A Testament to Investor Confidence and Financial Strength

The Emirate of Abu Dhabi’s Department of Finance successfully issued dollar-denominated bonds worth $5 billion through three tranches, which received a positive response from investors. The bonds were oversubscribed by 4.8 times, with the bond yield representing a margin higher than US Treasury bonds.

The three tranches included $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%. This issuance reflects investor confidence in the emirate’s credit standing and economic development strategy, as well as its strong financial stability.

The Emirate of Abu Dhabi achieved the lowest pricing margin ever in the CEEMEA region for bonds with maturities of 5, 10, and 30 years, further demonstrating investor confidence in the emirate’s financial stability and long-term outlook. The bonds received an AA rating from Standard & Poor’s and Fitch, adding to their credibility and attractiveness to global investors.

Chairman Jassim Mohammed Buataba Al Zaabi emphasized that the strong demand from global investors was due to the conservative management of debt and liquidity, as well as Abu Dhabi’s commitment to maintaining its financial stability over the long term. The issuance was managed by a group of lead managers, reflecting their confidence in Abu Dhabi’s financial stability and strength in managing debt and liquidity effectively.

In conclusion, this successful issuance of bonds by Abu Dhabi demonstrates strong investor confidence in its credit standing and economic development strategy, as well as its commitment to maintaining its financial stability over the long term.