Undersecretary to the UAE Ministry of Finance Younis Haji Al-Khoury said his country has received requests for approximately $ 22 billion to underwrite the $ 4 billion federal bonds offered, indicating large demand from the United Arab Emirates. of American and Asian investors for forward bonds.
He added at a press conference today that the high demand for its first federal issue indicates the high creditworthiness the country enjoys on global markets and that the country’s high credit rating has given these bonds a high edge. competitive.
He said the UAE offered 10-year bonds worth $ 1 billion with a yield 70 basis points higher than the yield on US bonds at the same term.
Al-Khoury explained that the 20-year bonds, worth $ 1 billion, were offered with a yield 105 basis points higher than the yield on US bonds for the same duration.
He pointed out that the 40-year Formosa bond, which amounted to $ 2 billion, had a yield of 3.25%.
The Ministry of Finance has authorized Abu Dhabi Commercial Bank, Bank of America Securities, Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank, HSBC and JPMorgan “, Mashreq Bank and Standard Chartered to assume the role of lead manager and offer manager, with the aim of taking responsibility for organizing underwriting sessions with international investors.
As for the category of participating investors, said the largest investors in 10-year bonds came from the Middle East, with a rate of 40%, while the largest US investors invested in 20-year bonds, 43%, while Asian investors accounted for 71% of Formosa Bonds.
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