The UAE secured $1.5B through a bond offering on Wednesday, marking its re-entry into global debt markets since September.
The 10-year bond, denominated in dollars, was priced at 60 basis points above US Treasuries and attracted more than four times oversubscription, with demand exceeding $5.75B. The bonds will be listed on the London Stock Exchange and Nasdaq Dubai.
Mohamed Hadi Al Hussaini, the Minister of State for Financial Affairs, noted, “Strong investor interest led to a 30 basis points reduction from the initial price guidance, setting the final price at US Treasuries plus 60 basis points.”
The UAE’s finance ministry highlighted that the substantial demand reflects the country’s increasing attractiveness to both domestic and international investors. With a credit rating of Aa2 from Moody’s Investors Service, the UAE shares the same rating as the UK and South Korea, indicating strong creditworthiness.
Moody’s rates the UAE’s debt at Aa2, the third-highest investment grade, while Fitch Ratings assigns it one notch lower at AA-.
In September, the UAE raised $1.5B from 10-year bonds, achieving an order book exceeding $6.8B.
Credit Agricole, Emirates NBD Bank, First Abu Dhabi Bank, HSBC Holdings, JPMorgan Chase, and Standard Chartered were appointed to manage the offering.
The UAE’s bond sale coincides with heightened activity among Gulf states in the international bond market this year, capitalizing on robust investor demand. Saudi Arabia led with $17B in debt sales, the highest among emerging markets, followed by Qatar and Bahrain.
