The Abu Dhabi Securities Market started from today, the listing of global medium-term bonds issued by the Emirate of Abu Dhabi, at a value of $ 7 billion in three categories according to the specific pricing provisions, in conjunction with the listing of bonds on the London Stock Exchange.
Categories of government bonds that have been included include $ 2 billion in bonds with fixed interest of 2.5% due in 2025, $ 2 billion of bonds with fixed interest of 3.125% due in 2030, and $ 3 billion of fixed-interest bonds at 3,875% in 2050.
The bond offering process was a great success as the record of requests for it exceeded $ 45 billion, which is about 6.3 times the amount offered for issuance by more than 100 unique accounts, to set a record for Abu Dhabi.
The launch of multi-tiered sovereign bonds by Abu Dhabi is part of the emirate’s medium-term strategy, which aims to enhance the emirate’s capital structure and benefit from diversified funding sources, especially given its maintenance of a distinct credit rating.
The rationale behind the bond offering showed the popularity among major global sovereign funds, which reflected the great confidence in the economic and financial capabilities of the Emirate of Abu Dhabi.
It is noteworthy that the Emirate of Abu Dhabi also succeeded during September 2019 in launching a multi-slide sovereign bond issue with a total value of $ 10 billion, distributed in three tranches, the first tranche of $ 3 billion due in 2024, and the second tranche of $ 3 billion due in 2029, and a third tranche for $ 4 billion, due in 2049.