The timing of Abu Dhabi’s first euro and sterling denominated bond issue last week might have been judged unfortunate given the unrest across the region and the declaration of a state of emergency in Bahrain. But the issue was ‘extremely well received’ and three times oversubscribed by 350 investors.
Perhaps Abu Dhabi partly sought to demonstrate that it is still business as usual in the Emirates. $4.4 billion was no mean sum, not that the Abu Dhabi Government needs the money at all. This is simply a financing to improve the internal rate-of-return on this purchase, something like mortgaging a house when you actually have the money available.
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