UAE - Mubasher: The UAE federal government has started selling US dollar-denominated bonds with 10, 20, and 40-year tranches for the first time as a federation, according to a document as cited by Reuters.
The UAE has set the initial price guidance of the 10-year notes at around 105 basis points (bps) over US Treasuries, the 20-year at about 135 bps over the same benchmark, and the 40-year at about 3.6%, as shown by the document.
The 40-year bonds will be Formosa, which are debt securities sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The country is expected to secure between $3 billion and $3.5 billion, two sources told Reuters.
It is noteworthy to mention that the UAE federal government has hired banks to market its first bond issuance, including Abu Dhabi Commercial Bank (ADCB), BofA Securities, Citi, Emirates NBD Capital, First Abu Dhabi Bank (FAB).