UAE: Dollar bonds attract orders amounting to $7.4 billion

September 19

 

The government of the United Arab Emirates, represented by the Ministry of Finance, announced the closing of its offering of US dollar-denominated sovereign bonds worth $1.5 billion for 10 years maturing in September 2033 with a yield of 4.917%, representing a margin of 60 basis points over the yield of US Treasury bonds. The bonds will be listed on the London Stock Exchange and Nasdaq Dubai.

 

 

 

 

The order book attracted high-quality local, regional and international investors, with purchase orders worth $7.4 billion secured, with subscription equivalent to five times the size of the issue by the time the final pricing was revealed, which reflects the growing strong interest of foreign investors in the UAE, in addition to the country’s commitment to improving its position as one of the most competitive economies. and progress at the world level.

 

 

 

 

Mohammed bin Hadi Al Husseini, Minister of State for Financial Affairs, said: “The UAE’s success in its new offering of sovereign bonds shows that the country remains an attractive destination for investors and one of the most attractive investment centers around the world.” He added: “The UAE has once again achieved strong results in its bond offering, attracting qualitative and diverse investors. The strong order book led to pricing being reduced by 25 basis points from opening pricing, with final pricing reaching 60 basis points above the US Treasury bond yield.”

 

The offering was managed by a group of lead managers and lead managers including Abu Dhabi Commercial Bank, BNP Paribas, Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Goldman Sachs, Mashreq Bank and Mizuho Bank.

 

 

 

 

The geographical allocation for the 10-year segment is distributed as follows:

 

 

 

 

45% for investors from the Middle East,

 

21% for US investors,

 

11% for Asian investors,

 

9% for UK investors,

 

And 14% for European investors.

 

While the final qualitative allocation for the 10-year segment is distributed as follows:

 

 

 

 

61% for banks and private banks,

 

32% for fund managers,

 

4% for pension funds and central banks,

 

And 3% for the insurance sector.

 

The bonds will receive a rating of AA- from Fitch, and Aa2 from Moody’s, in line with the credit rating of the UAE federal government, which reflects its creditworthiness supported by the high per capita GDP, innovative policies, solid international relations, and the ability to deal with challenges. Economic and financial.