The emirate of Abu Dhabi has begun to market the issuance of dollar-denominated bonds divided into three tranches with a term of three years, ten and a half years and 50 years.
According to Reuters, a document issued by one of the banks managing the deal stated that each segment of the bonds is of standard size, which usually means that it will not be less than $ 500 million. For each.
and the bonds maturing in 2023 offer investors an initial price of about 95 basis points above the yield of US Treasury bonds, and the second tranche due in March 2031 offers about 135 basis points. Above the same standard yield.
and the longest slice, due in 2070, shows around three percent.
Citi, Deutsche Bank, First Abu Dhabi Bank, Morgan Stanley and Standard Chartered were appointed to arrange the deal.
Sources told Reuters last week that Abu Dhabi was in talks with banks about issuing new bonds, after they had already raised $ 10 billion through debt issues this year to boost its public finances. In light of low oil prices and the Corona crisis.
The document shows that the new bond issue will be completed later on Tuesday.
oil-rich Abu Dhabi was rated AA by Fitch and Standard & Poor's and Aa2 by Moody's, overall making it the top destination A sovereign issuer by rating in the Gulf, it said in June it was considering raising more funds through the bond market to protect its finances from the impact of lower oil prices.
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