Investor appetite came in hot — and left pricing lean.
Abu Dhabi returned to global debt markets with a $3 billion dual-tranche bond, and buyers wasted little time circling the deal. Orders at one point swelled past $11 billion before books settled at launch with $4.3 billion allocated to the five-year notes and $5.6 billion to the 10-year tranche, excluding joint lead manager interest.
The shorter five-year bond priced with a 3.75% coupon at a reoffer price of 99.824%, compressing spreads to just 20 basis points over U.S. Treasuries — a sharp tightening from initial price thoughts pitched in the +50bps range. Final yield came in at 3.789%.
The longer 10-year tranche followed suit, landing with a 4.25% coupon at 99.814%. Spreads tightened decisively to +25bps from IPTs in the mid-50s, with yield fixed at 4.73%.
Behind the scenes, global heavyweights marshaled the transaction. JP Morgan acted as billing and delivery bank for the five-year notes, while Standard Chartered Bank handled the 10-year portion. A syndicate of regional and international lenders served as joint lead managers and global coordinators, underscoring the breadth of demand.
The senior unsecured Regulation S Category 1 bonds — benchmark-sized and issued under the emirate’s Global Medium Term Note Programme — are set to list on both the London Stock Exchange and the Abu Dhabi Securities Exchange. The expected AA ratings from S&P and Fitch align with Abu Dhabi’s sovereign standing.
The deal marks another chapter in the Gulf’s active start to 2026. Earlier this year, Saudi Arabia opened the regional issuance calendar with an $11.5 billion sale in January, signaling sustained global demand for high-grade GCC paper.
Abu Dhabi itself last tapped markets in September, also raising $3 billion across two maturities. This time, however, the pricing tells its own story: liquidity is plentiful, and investors are willing to pay up for stability backed by one of the region’s strongest sovereign balance sheets.
