The UAE Ministry of Finance has announced the successful issuance of $1.5 billion worth of US dollar-denominated sovereign bonds due in July 2034 with a yield of 4.857%. This represents a margin of 60 basis points over the yield of US Treasury bonds, indicating the attractiveness of the UAE as an investment hub. The bonds will be listed on both the London Stock Exchange and Nasdaq Dubai, attracting high-quality local, regional, and international investors.
Mohammed bin Hadi Al Hussaini, Minister of State for Financial Affairs, stated that the success of this new offering underscores the country’s attractiveness to investors and its status as one of the most attractive investment hubs in the world. The offering was managed by a group of lead managers and bookrunners including Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JPMorgan Chase, Credit Agricole CIB, and Standard Chartered. The bonds will be rated AA- by Fitch and Aa2 by Moody’s, reflecting the UAE Federal Government’s creditworthiness.
The geographical allocation for this 10-year segment of the bond offering is as follows: 38% for investors from the Middle East, 34% for American investors, 18% for investors from the United Kingdom, 7% for European investors, and 3% for Asian investors. Qualitatively, the allocation was distributed as 56% for fund managers