Abu Dhabi Returns to Debt Market With Dollar Bond Sale - Bloomberg
Abu Dhabi is selling dollar-denominated bonds, its first debt issuance in over a year.
The oil-rich emirate, one of seven comprising the United Arab Emirates, plans a 3-year note maturing in 2028 and a 10-year security due in 2035. The final terms, including the size and yields, may be announced later on Thursday.
Abu Dhabi, which issued $5 billion of Eurobonds last year, is marketing the 3-year notes at an initial price guidance of around 40 basis points over US Treasuries, while the 10-year bonds are being offered at about 55 basis points over the benchmark, according to a person familiar with the matter who asked not to be identified.
The deal comes after the UAE and other Gulf countries lowered interest rates last week in lockstep with the Federal Reserve, which cut rates for the first time this year.
Abu Dhabi maintains a low ratio of debt to Gross Domestic Product at 17.4% at the end of 2024, well below the peer median of 48.8%, according to Fitch Ratings.
Borrowing by Government Related Entities though is set to increase to finance the country’s massive transformation projects as it seeks to boost its non-oil economy, Fitch said in a report published in June.
The offering is being coordinated by six joint global coordinators: Citigroup, First Abu Dhabi Bank, Goldman Sachs International, HSBC, Morgan Stanley, and Standard Chartered Bank.
Abu Dhabi carries strong investment-grade ratings of Aa2 from Moody’s and AA from both S&P and Fitch, all with stable outlooks.
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