Abu Dhabi issues $ 3 billion in two tranches of bonds

A document showed that Abu Dhabi today launched 10-year bonds valued at $ 1.75 billion at 63 basis points above the U.S. Treasury and 30-year bonds valued at $ 1.25 billion at 3 Wednesday. %, in the second issue of the emirate questyear, for which it received requests for over $ 9.75 billion for two tranches.

The emirate sets at 65. the price of the ten-year tranche basis point above US TreasuriesAnd for the thirty-year sector at 3%, to be settled in the lower range of the final indicative price range, according to the document issued by one of the banks participating in the operation.

It had set an initial benchmark rate of around 90 basis points on 10-year US Treasuries and around 130 basis points on 30-year US Treasuries.

The deal is organized by BNP Paribas, First Abu Dhabi, JP Morgan, Morgan Stanley and Standard Chartered.

The UAE sold $ 2 billion in seven-year bonds in May after raising $ 15 billion in bond issues last year.

Abu Dhabi is expected to run a deficit of $ 11.7 billion in 2021, although it has prepared the budget assuming that the price of oil is $ 46 per barrel. Brent was trading around $ 72 today.

An investor presentation seen by Reuters showed that by the end of June 2021, Abu Dhabi had $ 39.5 billion in bonds in circulation, 3.7 billion dollars in loans to local banks and 2.4 billion in covered bonds.

He also explained that government-owned entities took over in lending about $ 59.2 billion through the end of June last year, but the emirate has not secured the debt of its wholly owned entities.

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