The Abu Dhabi government has launched more US dollar denominated bonds in an effort to raise additional liquidity in light of the economic slowdown due to the Corona virus pandemic and lower oil prices.
According to Reuters, a document showed on Tuesday that the Abu Dhabi government began marketing an issue of existing dollar bonds that matured in 2025, 2030 and 2050, which was launched last month. p>
This means reopening the subscription door using the same documents as the previous offering.
Abu Dhabi is offering about 165 basis points over US treasury bonds for 2025 bonds and the size of two billion dollars, and about 185 basis points above the US treasury bonds for the entitlement of 2030 and the size of two billion dollars also , And about 3.5 to 3.55 percent of the $ 3 billion bond that matures in 2050.
It was decided to assign BNP Paribas, First Abu Dhabi Bank, JPMorgan and Standard Chartered to arrange the deal, according to the document.
The document showed that the proceeds from the sale of debt instruments, which is likely to be completed later on Tuesday, will be used for general budget purposes.
A spokesman for the Abu Dhabi Finance Department has yet to respond to a Reuters request for comment.
Abu Dhabi issued $ 7 billion in three-tier bonds in April after a massive $ 10 billion bond deal to Qatar.
Abu Dhabi’s oil-rich Abu Dhabi, which has one of the best credit ratings in the region, received $ 45 billion in IPO applications in the April offering.
