Dubai: UAE Ministry of Finance released $ 4 billion bond package for subscription, including 10-year tranche, 20-year tranche, as well as 40-year dual-listed Formosa tranche . This is a historic debt offer given that it is the first issued by the federal government and not by an individual emirate.
“Throughout its development, the United Arab Emirates adopted a strong and comprehensive approach to economic and social development, which included building a strong credit profile, a strong balance sheet for the Union and a low level of debt. public, ”said Sheikh Maktoum bin. Mohammed bin Rashid Al Maktoum, vice-governor of Dubai and deputy prime minister and minister of finance, in a statement.
“In addition to its efforts to improve the efficiency and skills of human talents, the country has managed to achieve high financial solvency and reserves through its efficient management of economic projects. “
Raised on demand
The UAE sovereign bond subscription is expected to “witness strong demand from global and regional investors,” aided by the country’s creditworthiness and confidence in global markets.
The UAE government is rated AA- by Fitch and Aa2 for creditworthiness by Moody’s, which is the region’s highest sovereign rating by the international rating agency.
Amendment of the law
Federal Public Debt Decree No. (9) of 2018 enabled the UAE government to issue sovereign bonds and help the banking sector meet global liquidity standards upon issuance – “thereby supporting the role of the Central Bank of the United Arab Emirates in liquidity management in the banking sector “.
The Ministry of Finance has authorized Abu Dhabi Commercial Bank, BofA Securities, Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank, JP Morgan Securities, Mashreqbank and Standard Chartered Bank to act as lead managers and bookkeepers.