The Department of Finance – Abu Dhabi (DoF) announced that Abu Dhabi has issued US$3 billion USD-denominated bonds across two maturity periods.
The issuance attracted strong demand from international investors, reflecting confidence in Abu Dhabi’s credit rating, fiscal strength, and long-term economic prospects. This follows last year’s issuance of US$5 billion across three tranches, which set new benchmarks for investors and pricing in the CEEMEA region.
The bonds comprise a US$1 billion tranche maturing in three years, and a US$2 billion tranche maturing in 10 years. The rates represent a 10-basis point spread over three-year US Treasuries and a 18-basis point spread over 10-year US Treasuries. The issuance was five times oversubscribed, with the peak orderbook reaching US$18.5 billion.
The transaction achieved the tightest spreads in Abu Dhabi’s history. This demonstrates the continuous trust of global and local investors in Abu Dhabi’s solid credit fundamentals.
Abu Dhabi’s credit profile remains robust, supported by Fitch and S&P’s affirmation of the emirate’s long-term foreign-currency rating at AA with a stable outlook. These ratings underline the emirate’s fiscal resilience and the confidence of global investors.
Jassem Mohammed Bu Ataba Al Zaabi, Chairman of DoF, said: “Abu Dhabi continues to demonstrate the strength of its fiscal framework and long-term financial sustainability. Today’s successful dual-tranche issuance – achieving a five time oversubscription and the lowest spreads in Abu Dhabi’s history as well as versus international benchmarks – marks a historic milestone. It reflects global investor confidence in our prudent governance, diversified economy, and disciplined fiscal strategy.
“This record-setting outcome reaffirms Abu Dhabi’s position as a leading and trusted investment destination. By diversifying funding sources and accessing global capital markets on competitive terms, we are reinforcing our reputation as a reliable sovereign issuer while securing a lower cost of capital for the strategic entities that drive Abu Dhabi’s growth. Our focus remains clear: fiscal discipline, strategic investment, and building a resilient economy that delivers lasting prosperity.”
The issuance was managed by a syndicate of financial institutions acting as Joint Lead Managers and Joint Bookrunners, including Abu Dhabi Commercial Bank, Bank of China, Citi, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, HSBC, ICBC, J.P. Morgan, Morgan Stanley, SMBC, and Standard Chartered Bank.
