Thursday, September 23, 2021

Abu Dhabi Offers Second Dollar Bond for the Year Amid Low Yields

(Bloomberg) — Abu Dhabi is returning to international debt markets for the second time this year with a two-part dollar-denominated offering to take advantage of low borrowing costs.

The emirate is selling debt maturing in 10 years, with an initial price talk of about 90 basis points over Treasuries of similar maturity, according to a person familiar with the matter. It is also offering 30-year securities with an initial spread of 130 basis points. 

The bonds may price on Wednesday. The yield on its bond due 2028, which Abu Dhabi sold in May, is trading near its all-time low of 1.56% reached at the end of August.

The wealthiest of the seven emirates that make up the UAE, Abu Dhabi has a AA debt-rating at S&P Global Ratings. BNP Paribas, First Abu Dhabi Bank, JPMorgan, Morgan Stanley and Standard Chartered are the bookrunners for the sale.

©2021 Bloomberg L.P.

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