Abu Dhabi shows strong investor confidence
Abu Dhabi Business Investing UAE

Abu Dhabi demonstrates strong investor confidence with $10.0bln multi-tranche international bond

Abu Dhabi shows strong investor confidence in its solid credit fundamentals on 23rd September 2019 with a US$10.0 billion multi-tranche international bond offering.

The transaction is composed of three tranches: (i) US$3.0 billion, 2.125 percent, due in 2024, which priced at 65 bps over US Treasuries; (ii) US$3.0 billion, 2.500 percent, due in 2029, which priced at 85 bps over US Treasuries; and (iii) US$4.0 billion, 3.125 percent, due in 2049, which priced at 110 bps over US Treasuries.

The bonds were well accepted in the international debt capital markets,
with orders coming from over 650 unique accounts with the order book peaking at over US$25 billion.

The Chairman of the Department of Finance Abu Dhabi, Jassem Mohamed Bu Ataba AlZaabi commented that the success of the issuance is a testament of investor confidence in the Government of Emirate of Abu Dhabi’s economic and political stability and the strong credit story.

The combined orderbook reflected the investor confidence in the Government of Emirate of Abu Dhabi’s credit story.It achieved the tightest ever spreads by a MENA sovereign across the tenors and lowest coupon on 10 and 30-years Eurobond achieved by a MENA Issuer since the Government of Emirate of Abu Dhabi’s first ever issuance in 2007.

The highly successful transaction marks the Government of Emirate of Abu Dhabi’s robust credit fundamentals and strong investor confidence which retains their place as the tightest priced sovereign from the MENA region.

SOURCE

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