Tuesday 24 September 2019

#AbuDhabi Sells $10 Billion, Tapping Demand for Quality Bonds - Bloomberg

Abu Dhabi Sells $10 Billion, Tapping Demand for Quality Bonds - Bloomberg:

Abu Dhabi sold $10 billion of bonds in a three-part deal in its first international offering in two years as it takes advantage of relatively low borrowing costs.

The oil-rich emirate sold $3 billion of five-year fixed notes, $3 billion of notes due 2029 and $4 billion of 30-year notes.

The sovereign -- which boasts the third-highest grade from Moody’s Investors Service and S&P Global Ratings -- didn’t need to offer an extra premium to its yield curve to attract investors.

DETAILS OF ABU DHABI’S BOND SALE:



  • Debt due 2024 at yield premium of 65 basis points more than Treasuries of similar maturity versus initial price thoughts of 80 basis points. 
  • Securities due 2029 at a spread of 85 basis points versus indicative pricing of about 100 basis points. 
  • And 2049 bonds at 110 basis points compared with an earlier guidance of 125 basis points.

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