Ministry of Finance issues a multi-tranche bond package offering for subscription

The Ministry of Finance disclosed that the new bond package, which will be issued for subscription, comprises medium and long-term tranches: a 10-year tranche, a 20-year tranche, in addition to a 40-year dual-listed Formosa tranche

  
His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance.

His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance.

The UAE Government, represented by the Ministry of Finance (MoF), is set to issue a U.S. dollar- denominated multi-tranche bond offering for subscription. The Ministry of Finance disclosed that the new bond package, which will be issued for subscription, comprises medium and long-term tranches: a 10-year tranche, a 20-year tranche, in addition to a 40-year dual-listed Formosa tranche.

Commenting on this announcement, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance said: “Throughout its development, the UAE has adopted a solid and comprehensive approach to economic and social development, which included building a strong credit profile, a solid balance sheet for the Union, and a low level of government debt, which enhanced general economic stability. In addition to its efforts to enhance the efficiency and skills of human talent, the country has successfully managed to achieve high financial solvency and reserves as a direct result of its efficient management of economic projects.”

The Ministry of Finance authorised each of Abu Dhabi Commercial Bank PJSC, BofA Securities, Citigroup Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank PJSC, HSBC Bank plc, J.P. Morgan Securities plc, Mashreqbank psc, and Standard Chartered Bank to be Lead Managers and Bookrunners to arrange global investors calls for subscription sessions.

The subscription of the UAE’s sovereign bonds, which will be issued in accordance to Rule 144A under the Securities Act of the United States, is expected to witness high demand from global and regional investors, thanks to the country’s high credit standing and the confidence it enjoys in global markets. The Federal Government of the United Arab Emirates, is rated AA- by Global credit rating agency Fitch and Aa2 rating in credit worthiness - which is the highest sovereign rating in the region by the international rating agency, Moody’s - with a stable outlook for the national economy from both agencies.

The Federal Decree No. (9) of 2018 on public debt enabled the federal government to issue sovereign bonds and help the banking sector to meet global liquidity standards as soon as they are issued- thus supporting the role of the Central Bank of the UAE in managing liquidity in the banking sector.

Disclaimer: 

  • These materials are not an offer of securities for sale in the United States. The securities to which these materials relate have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), or with any security regulatory authority of any state or other jurisdiction of the United State, and may not be offered or sold within the United States except pursuant to an exemption from or in a transaction not subject to, the registration requirements of the Securities Act.  There has been and will be no public offering of the securities in the United States.
  • This document is being distributed to and is only directed at (i) persons who are outside the United Kingdom, (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), (iii) high net worth companies, and (iv) other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i) to (iv) above together being referred to as “relevant persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
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