Abu Dhabi is expected to sell $2 billion in seven-year US dollar-denominated bonds on Tuesday and has tightened the price guidance by 20 basis points after it received over $6 billion in orders, a document showed.
Guidance was revised to 50-55 bps over US Treasuries from 70-75 bps over Treasuries earlier in the day, according to the document from one of the banks on the deal, which is expected to launch later in the day.
Brent crude, trading at over $68 on Tuesday, has more than tripled since oil’s crash last year, when Brent fell below $20 a barrel.
Abu Dhabi is expected to post a budget deficit of around 43 billion dirhams ($11.7 billion) in 2021 against 37.2 billion dirhams last year, the preliminary prospectus for the new bond offering, reviewed by Reuters, showed.
The budget, however, is based on an oil price assumption of about $46 per barrel versus roughly $50 per barrel last year.
“This deficit is expected to be funded principally by borrowings,” the prospectus said.
Abu Dhabi has become a relatively frequent issuer of US dollar-denominated debt in recent years, and tapped the market three times last year for a total of $15 billion.
At the end of 2020, it had $40 billion in outstanding bonds and $3.9 billion in outstanding loans. Outstanding bonds and loans totaled $29.4 billion at the end of 2019, the prospectus showed.
UAE may issue debut federal domestic bonds this year, says Moody’sThe United Arab Emirates is expected to issue its first local currency bonds this year, ratings agency Moody’s said.While individual emirates -- most ... Economy
UAE’s telecoms operator Etisalat plans bond sale ahead of euro maturity: SourcesAbu Dhabi-based telecoms operator Etisalat is expected to tap the international bond market in the coming days ahead of a 1.2 billion euro ($1.45 ... Technology
UAE cabinet approves debt strategy for 2021-2023 to build local currency bond marketThe United Arab Emirates cabinet approved a public debt strategy aimed at developing the Gulf state's market for local currency bonds, the UAE’s vice ... Economy
UAE government approves $15 billion budget for 2021The United Arab Emirates government approved a 58 billion dirhams ($15.8 billion) budget for next year, state news agency WAM reported.For all the ... Economy