UAE: ADX Lists Abu Dhabi’s $5 Billion Multi-Tranche Bonds

SourceAl Bawaba
SectorFinancial Markets
CountryUnited Arab Emirates

The listing is part of Abu Dhabi’s strategy aimed to optimise the capital structure of the emirate, tapping into diverse funding sources while maintaining the current high credit ratings, reported Emirates news agency Wam. Underpinned by strong investor appetite, the bonds are priced at historic low yields. The programme comprises three tranches: a $2 billion 3-year tranche at 0.750 percent; a $1.5 billion long 10-year tranche at 1.7 percent, and a $1.5 billion 50-year tranche due in 2070 at 2.700 percent. As the only AA-rated sovereign issuer by all three rating agencies in the GCC region, Abu Dhabi’s proactive medium-term debt management strategy optimizes the capital structure of the emirate and taps into diverse funding sources, while maintaining the current credit ratings. The bond issuance was 4.8 times oversubscribed (at peak orderbook), with more...