Wednesday 3 June 2020

#AbuDhabi to look at more debt sales to protect finances - Reuters

Abu Dhabi to look at more debt sales to protect finances - Reuters:

Oil-rich Abu Dhabi will consider raising more money via the bond markets to protect its finances from the impact of low oil prices, it said in a statement, after raising $10 billion in bonds this year.

Abu Dhabi’s fiscal balance depends almost entirely on revenue from hydrocarbon royalties and taxes and dividends received from ADNOC, its national oil company.

With the highest credit rating in the Gulf region, Abu Dhabi attracted strong demand from investors for its fundraising this year, which was split into a $7 billion bond in April and a $3 billion re-opening of the same deal last month.

“The emirate’s net asset position, which exceeds 200% of GDP despite the recent oil price decrease, ensures that Abu Dhabi continues to be in a strong position to leverage market windows,” Abu Dhabi’s department of finance said in the statement on Wednesday.

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