Abu Dhabi Priced a USD 10.0 billion International Bond Offering

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Abu Dhabi successfully prices USD 10.0 billion multi-tranche bonds, demonstrating strong investor confidence in its unique and solid credit fundamentals
· The bonds priced at a spread of 65 bps, 85 bps and 130 bps over the 5-,10-, and 30-year U.S. Treasuries respectively
· USD 10.0 billion multi-tranche bonds comprising: USD 3.0 billion 2.500 per cent. Notes due 2022, USD 4.0 billion 3.125 per cent. Notes due 2027 and USD 3.0 billion 4.125 per cent. Notes due 2047
· High oversubscription levels, with over 500 orders exceeding USD 30 billion
· Strong demand from foreign investors representing 78% of the orderbook

On 3 October 2017, the Emirate of Abu Dhabi successfully priced a USD 10.0 billion multi-tranche international bond offering. The transaction comprised three tranches: (i) USD 3.Billion 2.500 per cent. due 2022, which priced at 65 bps over US Treasuries, (ii) USD 4.0 Billion 3.125 per cent. due 2027, which priced at 85 bps over US Treasuries and USD 3 Billion 4.125 per cent. due 2047, which priced at 130 bps over US Treasuries. The bonds were well received in the international debt capital markets, with the orderbook closing in excess of USD 30 billion, representing a 3x oversubscription, from approximately 500 orders. The bonds are scheduled to settle on [11] October 2017, subject to customary closing conditions.

Commenting on the offering, H.E. Riyad Abdulrahman Al Mubarak, the Chairman of the Department of Finance Abu Dhabi, said: “The strong reception of the offering in the international debt capital markets is a clear testament to Abu Dhabi’s solid and strong credit story. We are pleased to witness investors’ high confidence in the Emirate’s fundamentals – namely, our wise leadership, focused growth strategy and high buffers. These strengths have collectively created a diverse, robust and sustainable economy.”

He added: “This marks another milestone in the Emirate’s debt capital markets journey. As we look ahead, we will continue to prudently manage our indebtedness levels, which are currently one of the lowest globally.”

The final geographical allocation for the bonds stood at 78% from foreign investors, and 22% from Middle East investors.

The final geographic allocation for the 5-year Bonds was 78% foreign investors (8% to Asian investors, 29% to European and UK investors, 41% to US investors) and 21% to investors from the Middle East.

The allocation for the 10-year Bonds was 67% foreign investors (8% to Asian investors, 28% to European and UK investors, 31% to US investors) and 33% to investors from the Middle East.
The allocation for the 30-year Bonds was 92% foreign investors (15% to Asian investors, 30% European and UK investors, 47% to US investors) and 8% to investors from the Middle East.

The final investor types allocation for the 5-year Bonds was 21% to banks and private banks, 66% to fund managers and 8% to agencies, pensions and insurance, 5% to others1.

The final investor types allocation for the 10-year Bonds was 39% to banks and private banks, 55% to fund managers and 4% to agencies, pensions and insurance, 2% to others1. The final investor types allocation for the 30-year Bonds was 11% to banks and private banks, 73% to fund managers and 14% to agencies, pensions and insurance, 2% to others.

Bank of America Merrill Lynch, Citigroup, First Abu Dhabi Bank, HSBC and JP Morgan are Joint Lead Managers and Joint Bookrunners and Abu Dhabi Commercial Bank P.J.S.C. and Union National Bank P.J.S.C. were co-lead managers.

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