Abu Dhabi’s latest foray into global debt markets turned into a showcase of demand, with a $3 billion dual-tranche bond drawing more than five times in orders.
The emirate tightened pricing as the order book swelled past $16 billion, reflecting investor confidence in one of the world’s highest-rated sovereigns.
The deal split into two pieces: a $1 billion three-year note that priced at 3.625%, just 10 basis points over U.S. Treasuries, after guidance was squeezed by 20 basis points. The larger slice, a $2 billion ten-year bond, landed at 4.25%, or 18 basis points above Treasuries.
Both tranches carry AA-level ratings across the board and will trade in London and Abu Dhabi.
A heavyweight lineup of banks—Citi, First Abu Dhabi Bank, Goldman Sachs, HSBC, Morgan Stanley, and Standard Chartered—steered the sale, joined by a supporting cast including Abu Dhabi Commercial Bank, Bank of China, Emirates NBD Capital, ICBC, JPMorgan, and SMBC.
For Abu Dhabi, the offering underscores its ability to tap international markets on favorable terms, with global investors jostling for a piece of its paper.
