Ministry of Finance Successfully Issues USD 1.50 Billion 10-Year Bond

The Ministry of Finance of the United Arab Emirates has announced the successful closure of its recent sovereign bond offering, issuing a USD 1.50 billion 10-year bond maturing in July 2034.

Priced with a yield of 4.857 percent, the bond carries a spread of 60 basis points over US Treasuries. It will be listed on the London Stock Exchange (LSE) and Nasdaq Dubai.

The issuance garnered substantial investor interest, with the order book reaching USD 6.50 billion, oversubscribed by more than 4 times by final guidance. This overwhelming demand underscores the UAE’s robust appeal to global investors, affirming its position as a leading global economic hub.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, expressed confidence in the UAE's attractiveness to investors, stating,

“The successful completion of another sovereign bond by the UAE is a testament to our nation’s enduring attractiveness and premier investment status.”

He noted the bond's final pricing at US Treasuries plus 60 basis points, compressed by 30 basis points due to strong investor demand.

The transaction was managed by Crédit Agricole Corporate and Investment Bank, Emirates NBD Capital Limited, First Abu Dhabi Bank P.J.S.C., HSBC Bank plc, J.P. Morgan Securities plc, and Standard Chartered Bank.

Geographically, the bond allocation saw 38 percent to Middle Eastern investors, 34 percent to American investors, and significant participation from the UK, Europe, and Asia. Investor types included 56 percent to fund managers, 40 percent to banks and private banks, and allocations to pension funds, insurance, central banks, sovereign wealth funds, and other sectors.

Fitch and Moody's assigned the bonds AA- and Aa2 ratings, respectively, reflecting the UAE's strong creditworthiness driven by high GDP per capita, innovative policies, and robust economic resilience.

This issuance underscores the UAE's commitment to maintaining its competitive edge in global financial markets and its attractiveness as a destination for international investment.

News Source: Emirates News Agency