Abu Dhabi back to bond markets despite rebound in oil | Reuters
Abu Dhabi plans to sell U.S. dollar bonds on Tuesday in its first foray in the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices.
The oil-rich emirate gave initial guidance of 70-75 basis points over U.S. Treasuries for seven-year U.S. dollar-denominated bonds expected to price later in the day. It did not say how much it intended to raise.
The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the COVID-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes.
"I'm hearing that the issue size is around $2 billion only," said Zeina Rizk, executive fixed income director at Arqaam Capital, adding some of the funds might end up boosting foreign currency reserves.
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