The Ministry of Finance has announced the closure of a $1.50 billion bond offering denominated in US dollars with a 10-year term.
The Ministry of Finance has successfully completed an offering of a US dollar-denominated 10-year US$1.50 billion bond, with a maturity date in July 2034. The bond was issued with a yield of 4.857 percent, representing a spread of 60 basis points over US Treasuries. It will be listed on the London Stock Exchange (LSE) and Nasdaq Dubai.
The bond offering attracted high-quality investors, with the order book totaling US$6.50 billion, oversubscribed by more than 4 times by the final guidance. This strong demand underscores the UAE's appeal to both domestic and international investors, reflecting the country's commitment to remaining a competitive and advanced economy.
Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, highlighted the successful completion of the sovereign bond as a testament to the enduring attractiveness of the UAE to investors and its position as a premier investment hub.
The joint lead managers and book-runners on the transaction were 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.
The geographic distribution of the 10-year bonds was as follows: 38 percent to investors from the Middle East, 34 percent to American investors, 18 percent to investors from the UK, 7 percent to European investors, and 3 percent to Asian investors.
The final allocation of the 10-year bonds by investor type was 56 percent to fund managers, 40 percent to banks and private banks, 1 percent to pension funds and insurance, 1 percent to central banks and sovereign wealth funds, and 2 percent to other sectors.
The notes will be rated AA- by Fitch and Aa2 by Moody's, consistent with the credit rating of the Federal Government of the United Arab Emirates. These strong international credit ratings reflect the UAE's creditworthiness, driven by its high GDP per capita, innovative policies, strong international relationships, and resilience to economic and financial challenges.