UAE sovereign bonds listed on Nasdaq Dubai
Global books to the UAE bond issue peaked at $22.5 b
Dubai: The listing of UAE sovereign bonds on Nasdaq Dubai was marked by the ringing of the the market-opening bell by Mohammed bin Hadi Al Hussaini, Minister of State for Financial Affairs on Wednesday.
The sovereign bonds package – which is the first of its kind to be issued by the UAE Government – raised $4 billion, with the Ministry of Finance representing the UAE government in this issuance.
The bell ringing was attended by Essa Kazim, Governor of the Dubai International Financial Centre (DIFC) and Chairman of the Dubai Financial Market (DFM); Younis Haji Al Khoori, Undersecretary of Ministry of Finance; Hamed Ali, CEO of Nasdaq Dubai and Deputy CEO of the DFM; Saeed Rashid Al Yateem, Assistant Under Secretary of the Resource and Budget Sector at the Ministry of Finance; Mariam Al Amiri, Undersecretary, Financial Management Sector; and senior officials from both parties.
“The UAE has recorded an unprecedented achievement in issuing these bonds, which came in accordance with the UAE government’s strategy that has firm objectives and directives, and prioritises the prosperity of the UAE people. This issuance coincides with the adoption of the largest budget in the history of the UAE, thereby reaffirming the country’s strong and balanced economy,” said Al Hussaini.
The US dollar-denominated multi-tranche sovereign bonds are comprised of three tranches: a 10-year tranche, a 20-year tranche, in addition to a 40-year dual-listed Formosa tranche. The bonds captured the demand of international and regional investors.
Global books peaked at over $22.5 billion, representing a 5.6 per cent oversubscription. This enabled the Ministry of Finance to issue bonds that achieved the lowest-ever yield for a debut sovereign from the GCC, as the returns of the three tranches were priced at 2 per cent, 2.875 per cent and 3.25 per cent, respectively.
“The (bond) issuances shall give more momentum to UAE’s development efforts as our country is showcasing an excellent example in addressing the global economic challenges,” said Essa Kazim, Governor of the Dubai International Financial Centre (DIFC) and Chairman of the DFM.
“The three tranches achieved the lowest-ever yield for a debut sovereign from the GCC, another testament to the credit strengths of the UAE,” said Younis Haji Al Khoori.