The Emirate of Abu Dhabi has successfully completed the issuance of a multi-tranche US $ 5 billion sovereign bond.
According to the Emirates News Agency, the issuance consists of three segments: a tranche worth $ 2 billion for 3 years, and a long-term tranche worth $ 1.5 billion for a period 10 years, and a $ 1.5 billion tranche for 50 years.
The bonds were priced at historically low returns based on the strong demand from investors.
The 50-year tranche is the longest-term for bonds issued by a sovereign authority in the Gulf Cooperation Council states, which confirms Abu Dhabi's distinguished credit standing and the high confidence of investors. About the promising future prospects for the emirate's economy.
As the only entity in the Gulf Cooperation Council countries that received a sovereign credit rating of / AA / from the three credit rating agencies, Abu Dhabi's proactive strategy is based on medium. Term Debt Management to strengthen the capital structure of the emirate, and benefit from diversified sources of financing, while maintaining current credit ratings.
The bonds subscriptions exceeded 4.8 times the required volume, as it received requests from 60 new entities, and the volume of requests reached 24 billion US dollars. A year with a high turnout from international investors who acquired 95% of the total available bonds in this segment, confirming confidence in Abu Dhabi's ability to achieve sustainable economic growth in the long term.
and His Excellency Jassim Mohammed Buataba Al Zaabi, Head of the Department of Finance in Abu Dhabi, said: The success of this issuance, which comes in light of the global Covid-19 crisis, confirms Abu Dhabi's distinguished credit standing And the strength of the emirate's economy.
The 50-year segment is the first of its kind, not only for Abu Dhabi, but also at the level of the Gulf Cooperation Council countries, and it is also a reflection of the great investor confidence in our economy, credit strength and positive expectations. His Excellency added: Abu Dhabi has demonstrated a high degree of flexibility during this period as the global economy has witnessed many challenges.
As the United Arab Emirates prepares for the next 50 years, through its initiative 2020: The Year of Preparation for the Fifty, we affirm our commitment to support the National Strategy for Responsible Leadership by implanting A culture of financial sustainability.
and sovereign bond yields will allow Abu Dhabi to focus on the sustainability of ...
