Abu Dhabi, June 23, 2022 (WAM)-The United Arab Emirates Government, represented by the Ministry of Finance, has successfully terminated its US dollar-denominated dual tranche sovereign debt package. Medium- to long-term tranche: 10-year tranche and 30-year formosa tranche – with a total of US $ 3 billion, orders over $ 15 billion, double the initial target of $ 1.5 billion.
The prices of these bonds will be set on June 23, 2022, settled on July 7, 2022, and the tranche will be distributed as follows: The final coupon is 4.050%. The 10-year tranche will be listed on the London Stock Exchange (LSE) and Nasdaq Dubai.
2. The 30-year Formosa tranche was US $ 1.25 billion in size, priced at a spread of 175bps across US Treasuries, and the final coupon was 4.95%. The 30-year tranche will be listed on the London Stock Exchange (LSE), Thai Exchange and Nasdaq Dubai.
Finance Minister Mohamed bin Hadi al-Husayni pointed out that the successful subscription to the second government bond is a testament to investors’ confidence in the strong credit and stability of the UAE economy. Al-Husayni said: “The initial goal is a benchmark size of US $ 1.5 billion, global book orders reach about US $ 15 billion in daytime transactions, equivalent to about five times the oversubscription. Issuance expanded to US $ 3 billion. Pricing was tightened by 25 bps from the initial pricing guidance for both tranches, and final pricing was UST + 100 bps over a 10-year period and UST + 175 bps over a 30-year period.
“The new issue concessions priced for this deal were lower than what the market generally sees in this rise in volatility. This is the strong credit and strong credit that the UAE enjoys. Awareness of the leading position. This is the desire of international investors to take advantage of the multiple secure investment opportunities offered by the country’s creditworthiness and the country’s strong investment climate. ”
“Sovereign debt has helped make UAE more competitive in a variety of areas and support national monetary and economic policies aimed at achieving inclusive and sustainable development,” said Al Husini. This is the diversification of revenue sources, the attraction of foreign investment, and the multi-opportunity investment environment. The Ministry of Finance continues to strengthen the UAE’s financial system and provide innovative financial tools to promote national economic development. I will continue. ”
The Ministry of Finance thanked the obligatory banks: Abu Dhabi Commercial Bank PJSC, Bank of America Securities, Citigroup Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank PJSC, HSBC Bank plc, JP Morgan Securities plc, Mashreq Bank. I express my intention. psc, Standard Chartered Bank, and Industrial and Commercial Bank of China.
The geographical allocation of 10-year tranche bonds was as follows: 41% for investors from the Middle East. 26% of American investors. 21% of Asian investors. 5% for investors from the UK. European investors are 7%. The geographic distribution of the Formosa tranche for 30 years was distributed as follows: 17% for investors from the Middle East. 16% of Asian investors. 16% of investors from the UK. European investors are 9%.
The final 10-year tranche bond allocation by type was as follows: 36% for banks and private banks. 50% for fund managers. 12% for pension funds and central banks. 2% in the insurance sector. The 30-year Formosa Tranche bonds were distributed as follows: 23% in the insurance sector. The fund manager is 61%. 1% for pension funds and central banks. 15% for banks and private banks.
The United Arab Emirates Government has been rated AA- by Fitch and Aa2 by Moody’s, with a stable national economic outlook, another of the country’s solid financial and economic policies and global leadership. It’s proof.