Abu Dhabi Image Credit: File photo

Abu Dhabi: Abu Dhabi government on Monday announced the repayment of its sovereign bonds from the year 2009 with a top official reaffirming the repayment of the bonds to the high buffers and the vast financial reserves enjoyed by the emirate of Abu Dhabi.

“The Abu Dhabi government has once again reiterated the resilience of its financial, monetary and economic policies, which have enabled it to brave economic challenges and decrease in oil revenues by diversifying the economy to maintain the stability of its strong credit profile and large fiscal buffers,” said Jassim Mohammad Buatabh Al Zaabi, chairman of the Department of Finance, in a statement.

“This reinforces confidence in the emirate’s economy and its ability to achieve sustainable growth. It is also key to increasing the strength of Abu Dhabi’s economy in attracting foreign investments.”

The bonds were issued by Abu Dhabi Government in 2009 in two tranches of $1.5 billion (Dh5.5 billion) each, with a total value of $3 billion.

The first tranche with a value of $1.5 billion for five years was due and repaid in 2014, while the second tranche of $1.5 billion for 10 years, has now been repaid in April 2019.

These sovereign bonds, which at the time of their issuance were considered the largest of their kind in the Middle East, were assigned Aa2 credit rating by the global credit rating agency Moody’s where as Fitch, Standard & Poor’s assigned AA credit rating.

Al Zaabi also said the repayment of the bonds underscores the successful management of Sovereign Wealth Funds, as well as the government’s ability to issue successful bonds offering and repaying within the specified period.

Abu Dhabi government has been focusing on diversifying its economy away from oil with heavy spending on industries, tourism, fintech and infrastructure sectors after oil prices dropped in 2014 hurting the revenue of the government. Last year, the government also announced a stimulus package of Dh50 billion to boost the economy in the next three years as part of Ghadan 21 programme.