Abu Dhabi – Mubasher: Abu Dhabi issued a $7 billion multi-tranche international bond on 8 April after drawing strong investor demand.
The transaction included three tranches, including a $2 billion five-year tranche, a $2 billion 10-year tranche, and a $3 billion 30-year tranche, according to a statement on Sunday.
The issuance was more than 6.3 times oversubscribed, hitting a new record for the emirate, as the orderbook stood at around $45 billion with orders coming from above 100 new accounts.
The tranches priced at 220 basis points (bps), 240 bps, and 271.1 bps over five-, 10-, and 30-year US Treasuries, respectively.
“The success of the issuance, particularly amidst the global uncertainties caused by the COVID-19 pandemic and the oil price decline, is testament to the continued confidence placed in our aptitude to generate sustainable economic growth,” chairman of Abu Dhabi Department of Finance, Jassim Mohammed Buatabh Al Zaabi, pointed out.
“The debt profile of Abu Dhabi continues to be prudent, underscored by low direct Government debt. As a result, we have substantial fiscal flexibility and the capacity to add debt,” he noted.
BofA Securities, Citi, First Abu Dhabi Bank, HSBC, J.P. Morgan, and Standard Chartered Bank acted as joint lead managers and joint bookrunners.
