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

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

The bonds were priced on Thursday and will be settled on July 7.

By Wam Published: Thu 23 Jun 2022, 11:55 PM Last updated: Fri 24 Jun 2022, 12:01 AM

The UAE Ministry of Finance, has successfully closed its offering of a US 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 $3 billion, which saw orders in excess of $15 billion and the size doubled from initial target of $1.5 billion.

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

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

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

Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs pointed