The UAE dual-tranche USD dollar bond issuance achieves an oversubscription by 5x

The UAE dual-tranche USD dollar bond issuance achieves an oversubscription by 5x

The Federal Government of the United Arab Emirates, represented by the Ministry of Finance, has successfully closed its offering of a U.S. dollar-denominated dual-tranche sovereign bond package, which is comprised of medium and long-term tranches: a 10-year tranche and a 30-year Formosa tranche – with a total value of USD 3 billion, which saw orders in excess of USD 15 billion and the size doubled from initial target of USD 1.5 billion.

These bonds were priced on 23 June 2022, and will be settled on 07 July 2022, with their tranches distributed as follows:

1. The 10-year tranche bonds size was USD 1.75 billion, priced at a spread of 100 bps over US Treasuries, with final coupon at 4.050%. The 10-year tranche will be listed on London Stock Exchange (LSE) and Nasdaq Dubai.

2. The 30-year Formosa tranche size was USD 1.25 billion, priced at a spread of 175bps over US Treasuries, with final coupon at 4.951%. The 30-year tranche will be listed on London Stock Exchange (LSE), and Taipei Exchange, and Nasdaq Dubai.

His Excellency Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs pointed out that the successful subscription of the second sovereign bonds is a testament to the confidence