UAE to raise $3 bln with two-tranche dollar bonds | Reuters
The United Arab Emirates was set to raise $3 billion with a two-tranche U.S. dollar-denominated bond sale comprising a 10-year tranche and 30-year Formosa portion, a bank document showed on Thursday.
The bonds, for which demand topped $13.5 billion, will offer investors 100 basis points over U.S. Treasuries (UST) for the 10-year paper and 175 bps over UST for the Formosa notes, according to the document from one of the banks on the deal, expected to price later on Thursday.
The 10-year tranche will be of $1.75 billion and the 30-year $1.25 billion.
The debt sale will be used for "budgetary purposes in compliance with the Public Debt Strategy and/or for the purpose of investment by the EIA pursuant to the Public Debt Strategy," another bank document said, referring to the UAE's federal sovereign wealth fund.
An investor presentation viewed by Reuters showed the UAE expects 56.7 billion dirhams in revenues in its 58.9 billion-dirham budget for 2022, leaving it with a 2.2 billion-dirham deficit to fill.
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