UAE to issue dollar-denominated dual-tranche sovereign bonds

The UAE federal government, represented by its Ministry of Finance, has announced that it will issue dual-tranche US dollar-denominated benchmark size bonds.

The bonds will be issued with a 10-year tranche and a 30-year Formosa tranche, the UAE’s finance ministry has said.

The Federal Government of the UAE, represented by the Ministry of Finance, announced the plan to issue a dual-tranche USD Benchmark Size Bonds with a 10-year tranche and a 30-year Formosa tranche.#sovereignbonds #UAE pic.twitter.com/LRAvm0NT1S

— وزارة المالية | الإمارات (@MOFUAE) June 23, 2022

The ten-year tranche will be listed on London Stock Exchange (LSE) and Nasdaq Dubai, and the 30-year tranche will be listed on LSE, Taipei Exchange, and Nasdaq Dubai.

The Ministry of Finance has appointed Abu Dhabi Commercial Bank, Bank of America Securities, Citigroup Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank, J.P. Morgan Securities, Mashreqbank and Standard Chartered Bank as lead managers and bookrunners.

Meanwhile, the Industrial and Commercial Bank of China will be joining the mandated group as co-manager.

The issuance of the UAE’s second sovereign bonds will be in accordance with Rule 144A/Regulation S under the Securities Act of the US, the ministry said.

The issuance of the UAE’s second sovereign bonds will be in accordance with Rule 144A / Regulation S under the Securities Act of the United States.#sovereignbonds #UAE #news pic.twitter.com/XxlcpmcLH3

— وزارة المالية | الإمارات (@MOFUAE) June 23, 2022

The UAE federal government is rated AA- by Fitch, and Aa2 by Moody’s, with a stable outlook for the national economy.