UAE Closes $1.5 Billion 10-Year Bond with Strong Investor Demand

UAE, 9 July, 2024 :  The Ministry of Finance has closed a successful offering of a US dollar-denominated 10-year bond worth USD 1.50 billion, maturing in July 2034. The bond was issued with a yield of 4.857%, representing a spread of 60 basis points over US Treasuries. It will be listed on the London Stock Exchange (LSE) and Nasdaq Dubai.

The bond issue attracted high-quality investors, with the order book reaching USD 6.50 billion, oversubscribing by more than four times. This strong demand underscores the UAE’s growing appeal to both domestic and international investors.

His Excellency Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, stated, “The successful completion of another sovereign bond by the UAE is a testament to our nation’s enduring attractiveness to investors and our position as one of the world’s premier investment hubs.” He added that the robust order book led to price compression of 30 basis points from the initial guidance, with final pricing set at US Treasuries plus 60 basis points.

The joint lead managers and book-runners for the transaction were Crédit Agricole Corporate and Investment Bank, Emirates NBD Capital Limited, First Abu Dhabi Bank P.J.S.C., HSBC Bank plc, J.P. Morgan Securities plc, and Standard Chartered Bank.

Geographically, the 10-year bonds were distributed as follows: 38% to investors from the Middle East, 34% to American investors, 18% to UK investors, 7% to European investors, and 3% to Asian investors. By investor type, the allocation was 56% to fund managers, 40% to banks and private banks, 1% to pension funds and insurance, 1% to central banks and sovereign wealth funds, and 2% to other sectors.

The Notes will be rated AA- by Fitch and Aa2 by Moody’s, reflecting the UAE’s strong international credit ratings driven by its high GDP per capita, innovative policies, and resilience to economic challenges.

Source : www.mof.gov.ae