The Abu Dhabi government is listing bonds worth $5 billion on the local stock exchange

The Abu Dhabi government is listing bonds worth $5 billion on the local stock exchange

Image credit: WAM

Abu Dhabi, the capital of the UAE, has listed bonds worth $5 billion on the Abu Dhabi Securities Exchange (ADX).

The exchange said in a statement that the listing will take place in three tranches, starting on June 21.

The five-year portion of the bond, valued at $1.75 billion, was priced 35 basis points against U.S. Treasuries, resulting in a yield of 4.97 percent – ​​a significant deviation from the initial expectation of 70 basis points . The second tranche, worth $1.5 billion, has a yield of 5 percent and matures in 2034.

The longest tranche, also $1.75 billion, had a spread of 90 basis points and a yield of 5.5 percent.

Abu Dhabi sold its first Eurobonds since 2021 in May, one of the biggest deals from emerging markets in 2024.

The emirate has an AA rating from S&P Global Ratings, along with Britain, France and Qatar, allowing it to tap international debt markets without much impact on financing costs.

Meanwhile, ADX aims to support the growth of the UAE’s dynamic and diversified economy and remains committed to promoting best practices and strengthening its footprint in a thriving financial ecosystem.

Earlier this year, Mubadala Investment Company listed a $5.3 billion dual-currency bond on the ADX.

The Abu Dhabi wealth fund’s dollar and dirham denominated bonds, worth $4.5 billion and Dhs750 million respectively, were listed secondary through the issuing entity, Mamoura Diversified Global Holding.

Mubadala’s green bond listing marks the seventh listing of a green debt instrument on the Abu Dhabi Stock Exchange.

Similarly, First Abu Dhabi Bank, the UAE’s largest bank by assets, last November listed a Dhs1.3 billion green sukuk on the ADX, Abu Dhabi Future Energy Company’s (Masdar) debut green bond worth $750 million in October and the Abu Dhabi National Energy Company (TAQA) $1.5 billion bond in two tranches in September 2023.

Read: Abu Dhabi’s Mubadala lists $5.3 billion in dual currency bonds on ADX

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