Abu Dhabi (Etihad)
The UAE government, represented by the Ministry of Finance, announced the closing of its offering of US dollar-denominated sovereign bonds worth $1.5 billion for 10 years maturing in September 2033 with a yield of 4.917%, representing a margin of 60 basis points over the yield of US Treasury bonds. The bonds will be listed on the London Stock Exchange and Nasdaq Dubai.
The order book attracted high-quality local, regional and international investors, with purchase orders worth $7.4 billion secured, with subscription equivalent to five times the issue size by the time the final pricing was revealed, which reflects the growing strong interest of foreign investors in the UAE, in addition to the country’s commitment to improving its position as one of the most competitive economies. and progress at the world level.
His Excellency Mohammed bin Hadi Al Husseini, Minister of State for Financial Affairs, said: “The UAE’s success in its new offering of sovereign bonds shows that the country remains an attractive destination for investors and one of the most attractive investment centers around the world.”
He added: “The UAE has once again achieved strong results in its bond offering, attracting qualitative and diverse investors. The strong order book led to a reduction in pricing by 25 basis points from the opening pricing, with the final pricing reaching 60 basis points above the US Treasury bond yield.” .
The offering was managed by a group of lead managers and lead managers including Abu Dhabi Commercial Bank, BNP Paribas, Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Goldman Sachs, Mashreq Bank and Mizuho Bank.
The geographical allocation for the 10-year segment is as follows: 45% for investors from the Middle East, 21% for American investors, 11% for Asian investors, 9% for investors from the United Kingdom, and 14% for European investors. While the final qualitative allocation for the 10-year tranche was distributed as follows: 61% to banks and private banks, 32% to fund managers, 4% to pension funds and central banks, and 3% to the insurance sector.
The bonds will receive a rating of AA- from Fitch Ratings, and Aa2 from Moody’s, in line with the credit rating of the federal government of the UAE, which reflects its creditworthiness supported by the high per capita GDP, innovative policies, strong international relations, and the ability to deal with challenges. Economic and financial.
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