Abu Dhabi Government lists $5.3bn bonds on local exchange

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

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

The five-year portion of the bond, valued at $1.75bn, was priced 35 basis points over US Treasuries, resulting in a yield of 4.97 per cent – a significant deviation from the initial guidance of 70 basis points. The second tranche, worth $1.5bn, has a yield of 5 per cent and matures in 2034.

The longest tranche, also $1.75bn, had a spread of 90 basis points and a yield of 5.5 per cent.

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

The emirate is rated AA by S&P Global Ratings, the same as the UK, France, and Qatar, allowing it to tap international debt markets without much of an impact on its borrowing costs.

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

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

The Abu Dhabi wealth fund’s dollar—and dirham-denominated bonds, totalling $4.5bn and Dhs750m, respectively, were secondary listed through its issuing entity, Mamoura Diversified Global Holding.

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

Similarly, First Abu Dhabi Bank, the UAE’s biggest bank by assets, listed a Dhs1.3bn green sukuk on ADX last November, Abu Dhabi Future Energy Company’s (Masdar) $750m debut green bond in October and Abu Dhabi National Energy Company’s (TAQA) $1.5bn dual-tranche bond in September 2023.

Read: Abu Dhabi’s Mubadala lists $5.3bn dual currency bond on ADX