USD 5 billion Bonds issued by Abu Dhabi Department of Finance

The Department of Finance – Abu Dhabi (DoF), declared that the emirate of Abu Dhabi has issued USD 5 billion USD-denominated bonds across three maturity periods. The issuance successfully attracted strong investor demand and reinforced the emirate’s commitment to delivering on its comprehensive economic development strategy.

The issuance included a USD 1.75 billion tranche maturing in 5 years with a coupon rate of 4.875%, a USD 1.5 billion tranche maturing in 10 years with a coupon rate of 5.0%, and a USD 1.75 billion tranche maturing in 30 years with a coupon rate of 5.5%. The issuance was 4.8 times oversubscribed and the pricing landed meaningfully inside fair value. The achievement by Abu Dhabi represents the tightest spread ever achieved by the emirate and the tightest spread ever achieved by any issuer in the CEEMEA and is a testament to the deep trust international investors place in Abu Dhabi’s financial stability, even during periods of increased unpredictability. Rating agencies Standard & Poor’s and Fitch have both assigned a credit rating of ‘AA’ to the bonds.

H.E. Jassem Mohammed Bu Ataba Al Zaabi, Chairman of the Department of Finance – Abu Dhabi, said: “This successful issuance was backed by strong demand from global investors, and is in line with our long-term approach and philosophy for conventional and optimal debt management, under our AA credit ratings. The investor inclination and the lowest spreads ever achieved by an issuer in the CEEMEA region, stand witness to global investor confidence in Abu Dhabi’s financial stability as well as its positive long-term economic outlook.”

The bond issuance was managed by lead managers and underwriters including Abu Dhabi Commercial Bank, Citi, First Abu Dhabi Bank, HSBC, JP Morgan, Morgan Stanley, and Standard Chartered Bank.