UAE USD Bond Issue Achieved Strong Results With Oversubscription By 5 Times


(MENAFN- Emirates News Agency (WAM))

ABU DHABI, 18th September, 2023 (WAM) -- The Federal Government of the United Arab Emirates, represented by the Ministry
of Finance, successfully closed its offering of a U.S. dollar-denominated 10-years USD 1.5 billion bond
maturing on September 2033, issued with a yield of 4.917% representing a spread of 60 bps over US Treasuries. The bond
will be listed on the London Stock Exchange (LSE) and Nasdaq Dubai.
The order book
attracted high quality investors and exceeded USD 7.4 billion with the transaction being firmly oversubscribed by 5 times by the time the final guidance was disclosed, attracting strong demand from domestic, regional and international investors. This displays the UAE's increasing attractiveness to foreign investors and the commitment of the UAE to maintain its status as one of the most competitive and highly advanced economies in the world.
Mohamed bin Hadi Al Hussaini, Minister
of State for Financial Affairs, said:“The successful completion of another sovereign bond
by UAE, is a testament that UAE remains an attractive destination for investors and one of the World's most attractive investment
hubs.”
He added:“The UAE has yet again achieved strong results in its recent bond
offering attracting strong and diversified investors demand. The strong order book
resulted in price compression of 25bps from the initial pricing guidance, with final pricing at US Treasuries plus 60 bps.”
The issue was arranged and offered through a syndicate of joint lead managers and book
runners comprising of Abu Dhabi Commercial Bank PJSC, BNP Paribas, Citigroup
Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank PJSC, HSBC Bank plc, Goldman Sachs, Mashreq Bank PSC and Mizuho.
The geographic allocation of the 10-year bond
s was distributed as follows: 45% for investors from the Middle East; 21% for American investors; 11% for Asian investors;9% for investors from the UK; and 14% for European investors. The final 10-year bond
s allocation by type was distributed as follows: 61% for bank
s and private bank
s; 32% for fund managers; 4% for pension funds and central bank
s; and 3% for the insurance sector.
The Notes will be rated AA- by Fitch, and Aa2 by Moody's, in line with the credit rating of the Federal Government of the United Arab Emirates. UAE's strong international credit rating reflect the creditworthiness of the UAE which is driven by the high GDP
per capita, innovative policies, strong international relationships, and ability to withstand economic and financial
challenges.

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Emirates News Agency (WAM)

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