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UAE’s Ministry of Finance set to issue dollar-dominated multi-tranche bond offering

UAE’s Ministry of Finance set to issue dollar-dominated multi-tranche bond offering

The UAE’s Ministry of Finance (MoF) is set to issue a dollar-denominated multi-tranche bond offering for subscription, comprising medium and long-term tranches: a 10-year tranche, a 20-year tranche, and a 40-year dual-listed Formosa tranche. The MoF authorised Abu Dhabi Commercial Bank, BofA Securities, Citigroup Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank, HSBC

The UAE’s Ministry of Finance (MoF) is set to issue a dollar-denominated multi-tranche bond offering for subscription, comprising medium and long-term tranches: a 10-year tranche, a 20-year tranche, and a 40-year dual-listed Formosa tranche.

The MoF authorised Abu Dhabi Commercial Bank, BofA Securities, Citigroup Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank plc, J.P. Morgan Securities plc, Mashreqbank PSC, and Standard Chartered Bank to be Lead Managers and Bookrunners to arrange global investor calls for subscription sessions.

“Throughout its development, the UAE has adopted a solid and comprehensive approach to economic and social development, which included building a strong credit profile, a solid balance sheet for the Union, and a low level of government debt, which enhanced general economic stability,” said Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai and Deputy Prime Minister and Minister of Finance.

UAE markets its first federal bond to global investors

Securities, which are denominated in dollars, will mature in 10 and 20 years, according to a source

“In addition to its efforts to enhance the efficiency and skills of human talent, the country has successfully managed to achieve high financial solvency and reserves, as a direct result of its efficient management of economic projects,” he added.

Subscription of the UAE’s sovereign bonds, to be issued in accordance to Rule 144A under the Securities Act of the US, is expected to witness high demand from global and regional investors, thanks to the country’s high credit standing and the confidence it enjoys in global markets.

The Federal Government of the UAE is rated AA- by Global credit rating agency Fitch, and Aa2 rating in credit worthiness – the highest sovereign rating in the region by the international rating agency, Moody’s. Both agencies have indicated a stable outlook for the national economy.

The Federal Decree No.9 of 2018 on public debt enabled the federal government to issue sovereign bonds and help the banking sector to meet global liquidity standards as soon as they are issued- thus supporting the role of the Central Bank of the UAE in managing liquidity in the banking sector.

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