Abu Dhabi priced a $7bn multi-tranche international bond offering as an integral component of its medium-term strategy. This attracted strong interest from international investors, the Abu Dhabi Department of Finance said Sunday.
Commenting on the offering, Jassim Al Zaabi, the department’s chairman; said: “The success of the issuance, particularly amidst the global uncertainties caused by COVID-19 pandemic and the oil price decline; is testament to the continued confidence placed in our aptitude to generate sustainable economic growth.”
“Our robust credit fundamentals and strong credit ratings with stable outlooks have enabled us to attract remarkable demand from a diverse pool of investors from the international debt capital markets,” he was quoted as saying by Emirates News Agency (WAM).
He continued, “The debt profile of Abu Dhabi continues to be prudent, underscored by low direct Government debt. As a result, we have substantial fiscal flexibility and the capacity to add debt. On that basis, we also seized the opportunity to capitalize on the current available market window. Our debt management strategy is a vital component of Abu Dhabi’s economic development and supports the Abu Dhabi Economic Vision 2030.”
Abu Dhabi has a strong balance sheet and a robust debt profile, which yields substantial capacity to add debt. This capacity also led to the development of the global medium-term bond strategy, said WAM.