Abu Dhabi Issues $5 Billion in Bonds with Record-Low Yield, Boosting Financial Stability and Long-Term Growth

The Department of Finance – Abu Dhabi successfully completed the issuance of dollar-denominated bonds worth $5 billion through three tranches. The issuance received a positive response, indicating investors’ confidence in the emirate’s credit standing and economic development strategy.

The bonds included three tranches: $1.75 billion for 5 years with a return of 4.875%, $1.5 billion for 10 years with a return of 0.5%, and $1.75 billion for 30 years with a return of 5.5%. The subscription was oversubscribed by 4.8 times, with the bond yield representing a margin higher than US Treasury bonds.

Chairman Jassim Mohammed Buataba Al Zaabi emphasized the strong demand from global investors and the conservative management of debt and liquidity. The issuance was managed by a group of lead managers, reflecting confidence in the financial stability of Abu Dhabi.

Overall, the successful issuance of bonds by the Emirate of Abu Dhabi demonstrates strong investor confidence and positive long-term outlook for the emirate’s financial stability, achieving the lowest pricing margin ever in the CEEMEA region for bonds with maturities of 5, 10, and 30 years, reflecting investor confidence in its credit standing and economic development strategy.