Mubasher TV
Contact Us Advertising   العربية

Abu Dhabi completes $5bn multi-tranche bond issuance

Abu Dhabi completes $5bn multi-tranche bond issuance
The bonds are issued in three tranches

UAE - Mubasher: Abu Dhabi has completed a $5 billion multi-tranche bond issuance to promote a sustainable financial sector, according to the Emirates News Agency (WAM).

Priced at historic low yields, the bonds are issued in three tranches, comprising a three-year tranche worth $2 billion, a 10-year tranche worth $1.5 billion, and a 50-year tranche worth $1.5 billion.

The 50-year tranche is the longest term for a bond issued by a GCC sovereign issuer, reflecting the investors’ trust in Abu Dhabi's future economic prospects.

Meanwhile, the tranches were priced with a yield at 0.83% for three-year bonds, 1.732% for 10-year bonds, and at 2.7% the 50-year notes.

Pricing the three-year tranche with a yield below 1% marks the first for dollar issuance by a GCC country.

The bond issuance was 4.8 times oversubscribed, with orders coming from over 60 new accounts and an orderbook which peaked at $24 billion.

The emirate will use the proceeds of the issuance to expand a sustaining pronounced non-hydrocarbon sector and diversify its sources of funding.

The Chairman of the Abu Dhabi Department of Finance, Jassem Mohammed Buatabh Al Zaabi, commented: "The success of this bond issuance, in the midst of the Covid-19 global crisis, demonstrates the robust credit fundamentals and more broadly the strength of Abu Dhabi’s economy."