Abu Dhabi plans to issue US dollar-denominated bonds this year, its first since 2017, as the emirate seeks to capitalize on low rates to offset the impact of falling oil prices, Reuters reported, citing unnamed sources familiar with the matter.
The government seeks to raise the financing before the end of the year, after updating its bond program documentation. A bond deal of at least $1 billion is likely, said one of the sources.
The new issue is not tied to any specific project and will be used for general budgetary purposes, one of the sources told Reuters.
The United Arab Emirates (UAE) is home to one of the strongest foreign currency reserves in the region. Abu Dhabi, the capital city, also has the largest hydrocarbon reserves in the emirates.
Brent crude futures fell 65 cents, or 1.1 percent on Friday, to settle at $60.43 a barrel.
In April, Abu Dhabi paid back $1.5 billion in 10-year bonds that it had raised as part of a $3 billion issuance in 2009. The remaining $1.5 billion was repaid in 2014.
Abu Dhabi was last in the debt markets in 2017, Reuters reported. At the time, it raised $10 billion through a triple-tranche debt issue that attracted heavy demand.