UAE, Abu Dhabi – 25 April 2024: The Department of Finance – Abu Dhabi (DoF), announced that the emirate of Abu Dhabi has issued USD 5 billion USD-denominated bonds across three maturity periods. The issuance successfully attracted strong investor demand and underpinned the emirate's commitment to delivering on its comprehensive economic development strategy.

The issuance included a USD 1.75 billion tranche maturing in 5 years with a coupon rate of 4.875%, a USD 1.5 billion tranche maturing in 10 years with a coupon rate of 5.0%, and a USD 1.75 billion tranche maturing in 30 years with a coupon rate of 5.5%. The rates represent a 35-basis point spread over 5-year US Treasuries, a 45-basis point spread over 10-year Treasuries, and a 90-basis point spread over 30-year Treasuries. The issuance was 4.8 times oversubscribed and the pricing landed meaningfully inside fair value. The spread achieved by Abu Dhabi represents the tightest spread ever achieved by the emirate and the tightest spread ever achieved by any issuer in the CEEMEA region for 5, 10, and 30-year issuances, a testament to the deep trust international investors place in Abu Dhabi's financial stability, even during periods of increased volatility.

Rating agencies Standard & Poor’s and Fitch have both assigned a credit rating of 'AA' to the bonds.

H.E. Jassem Mohammed Bu Ataba Al Zaabi, Chairman of the Department of Finance – Abu Dhabi, said: “This successful issuance was backed by strong demand from global investors, and is in line with our long-term approach and philosophy for conservative and optimal debt management, under our AA credit ratings. The investor appetite and the lowest spreads ever achieved by an issuer in the CEEMEA region, stand testament to global investor confidence in Abu Dhabi’s financial stability as well as its positive long-term economic outlook.”

The bond issuance was managed by lead managers and underwriters including Abu Dhabi Commercial Bank, Citi, First Abu Dhabi Bank, HSBC, JP Morgan, Morgan Stanley, and Standard Chartered Bank.

About the Department of Finance

The Department of Finance (DoF) serves as the guardian of financial sustainability for the Emirate of Abu Dhabi. DoF ensures the prudent management of government resources, upholding the highest standards of accountability and fiscal responsibility, and through meticulous oversight and strategic planning, the Department engages with key governmental entities to execute mandates that advance Abu Dhabi’s economic objectives. These efforts ensure Abu Dhabi’s growth, prosperity, positioning DoF as a catalyst for prosperity and growth.

Media Contacts: ⁠For media inquiries contact email please contact: media@addof.gov.ae