The UAE Ministry of Finance intends to offer a multi-tranche package of US dollar-denominated sovereign bonds for subscription.
According to Arabiya Net, the ministry stated that the new bond package to be launched for subscription will include traditional medium and long-term tranches of 10 and 20 years, in addition to a dual Formosa bond tranche. Listing for 40 years.
A document seen by Reuters on Wednesday stated that the UAE federal government had sold the first of three tranches of bonds worth $4 billion, after receiving requests for more than 17 billion dollars.
For his part, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, said: The UAE has relied on its development path on a solid methodology. And comprehensive economic and social development, which included building a strong credit profile, a solid balance sheet for the union, and a low level of government debt, which enhanced general economic stability. In addition to its efforts to enhance the efficiency and skills of human cadres, the state has successfully managed to achieve high financial solvency and reserves as a direct result of its efficient management of economic projects.
The Ministry of Finance has delegated Abu Dhabi Commercial Bank, Bank of America Securities, Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank and HS Bank BC, JP Morgan, Mashreq Bank and Standard Chartered to take over as Bookrunners and Offering Managers, with the aim of taking responsibility for arranging subscription sessions with international investors.
It is expected that the UAE sovereign bonds, which will be offered in accordance with the provisions of Rule 144-A of the Securities Act issued in the United States of America, will witness a great demand from International and regional investors, thanks to the high credit standing and confidence that the country enjoys in global markets, as the UAE enjoys a sovereign credit rating of AA - by Fitch International, and a rating of Aa2 in creditworthiness, which is the strongest sovereign rating in the region, by the international rating agency Moody's. With the country obtaining a stable outlook from both agencies.
It is noteworthy that Federal Decree-Law No. (9) of 2018 in the matter of public debt enabled the federal government to issue sovereign bonds and help the banking sector to meet the rules of international liquidity. Once issued, in support of the role of the Central Bank of the UAE in managing liquidity in the banking sector.
