Abu Dhabi’s $7 billion multi-tranche international bond offering was more than 6.3 times oversubscribed, a record for the emirate.

The offering is part of Abu Dhabi’s medium-term strategy that aims to optimize the capital structure of the Emirate, tapping into diverse funding sources whilst maintaining the current credit ratings, the Abu Dhabi Department of Finance said in a statement.

The transaction comprised of three tranches including a $2 billion 5-year tranche, a $2 billion 10-year tranche, and a $3 billion 30-year tranche.

According to the statement, the 30-year bonds were particularly well received by international investors, who accounted for 98 percent of the final geographical allocation in this tranche, showcasing trust in Abu Dhabi’s ability to deliver sustained, long-term economic growth.

The orderbook reached $45 billion approximately with orders coming from over 100 new accounts. The tranches priced at 220 basis points over US Treasuries for 5-year bonds, 240 basis points over the same benchmark for 10-year bonds, and 271.1 basis points over US Treasuries for 30-year notes.

BofA Securities, Citi, First Abu Dhabi Bank, HSBC, J.P. Morgan, and Standard Chartered Bank were joint lead managers and joint bookrunners.

“The success of the issuance, particularly amidst the global uncertainties caused by the COVID-19 pandemic and the oil price decline, is testament to the continued confidence placed in our aptitude to generate sustainable economic growth,” Jassim Mohammed Buatabh Al Zaabi, the Chairman of the Abu Dhabi Department of Finance said.

The UAE announced 479 new coronavirus cases on Sunday, bringing the total number of cases in the country to 6,781.

(Writing by Gerard Aoun; editing by Seban Scaria)

( gerard.aoun@refinitiv.com )

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