ABU DHABI 11 October 2017: On 3 October 2017, the Emirate of Abu Dhabi successfully priced a US$10 billion multi-tranche international bond offering.
The transaction comprised three tranches:
- $3 billion 2.5 per cent due 2022, which priced at 65 bps over US Treasuries
- $4 billion 3.125 per cent due 2027, which priced at 85 bps over US Treasuries and
- $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 $30 billion, representing a 3 times over-subscription, from approximately 500 orders. The bonds are scheduled to settle on [11] October 2017, subject to customary closing conditions, said Wam
“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,” said Riyad Abdulrahman Al Mubarak, the Chairman of the Department of Finance Abu Dhabi.
The final geographical allocation for all 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 and Union National Bank were co-lead managers.