The UAE government, represented by the Ministry of Finance (MoF), is planning to offer a package of multi-tranche sovereign bonds denominated in US dollars for subscription.
According to the ministry, “The new bond package, which will be issued for subscription, comprises medium and long-term tranches: a 10-year tranche, a 20-year tranche, in addition to a 40-year dual-listed Formosa tranche.”
The Ministry of Finance authorized each of Abu Dhabi Commercial Bank, BofA Securities, Citigroup Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank, JP Morgan Securities, Mashreqbank, and Standard Chartered Bank to be Lead Managers and Bookrunners to arrange global investors calls for subscription sessions.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum UAE Finance Minister
“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. 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.”
According to the statement, the UAE’s sovereign bonds, which will be issued in compliance with Rule 144A of the Securities Act of the United States, are expected to witness high demand from global and regional investors.
The Federal Decree No. 9 of 2018 on public debt allowed the federal government to issue sovereign bonds and assist the banking industry in meeting global liquidity norms as soon as they were issued, bolstering the Central Bank of the UAE’s role in banking sector liquidity management.
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