Abu Dhabi issues the second bond in dollars questyear due to low yields

The Emirate of Abu Dhabi is returning to the international debt markets for the second time questyear, with an offer in two parts in dollars, to take advantage of lower financing costs.

The emirate is selling debt with a 10-year maturity, with an initial price of about 90 basis points on US Treasuries of a similar maturity, according to Bloomberg, citing a person familiar with the matter.

It also offers 30-year bonds with an initial spread of 130 basis points.

The bond’s price could be set Wednesday and the yield on the 2028 bond, which Abu Dhabi sold in May, is trading close to the all-time low of 1.56% reached at the end of August.

Abu Dhabi, the richest of the seven emirates that make up the UAE, has a debt rating of AA from S&P Global Ratings.

The bond offering is managed by BNP Paribas, First Abu Dhabi Bank, JPMorgan, Morgan Stanley and Standard Chartered.

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