Abu Dhabi Issues $5 Billion in Bonds with Oversubscription, Further Boosting Investor Confidence

The Department of Finance – Abu Dhabi recently issued dollar-denominated bonds worth $5 billion through three tranches. The issuance received a positive response from investors, indicating their confidence in the emirate’s credit standing and economic development strategy.

The bonds included three tranches: $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%. The subscription was oversubscribed by 4.8 times, with the bond yield representing a margin higher than US Treasury bonds.

Investor confidence in the Emirate of Abu Dhabi was further boosted when it achieved the lowest pricing margin ever in the CEEMEA region for bonds with maturities of 5, 10, and 30 years. The bonds received an AA rating from Standard & Poor’s and Fitch, reflecting their strong financial stability and management of debt and liquidity.

Chairman Jassim Mohammed Buataba Al Zaabi emphasized the strong demand from global investors and the conservative management of debt and liquidity by Abu Dhabi’s Department of Finance. The issuance was managed by a group of lead managers, reflecting their confidence in the emirate’s financial stability.

Overall, the successful issuance of bonds by Abu Dhabi demonstrates strong investor confidence and a positive long-term outlook for the emirate’s financial stability, as well as its commitment to responsible management of debt and liquidity to maintain its economic development strategy in line with global standards.