The debt is rated Aa2, the third-highest investment grade, by Moody’s and one step lower at AA- by Fitch Ratings
The UAE raised $1.5bn from a bond sale on Wednesday, marking the country’s return to international debt markets since September.
The 10-year dollar-denominated security priced at 60 basis points over US Treasuries was oversubscribed more than four times after demand exceeded $5.75bn. The notes will be listed on the London Stock Exchange and Nasdaq Dubai.
“The robust order book led to price compression of 30 basis points from the initial pricing guidance, with the final pricing set at US Treasuries plus 60 basis points,” said Mohamed Hadi Al Hussaini, the Minister of State for Financial Affairs.
The UAE finance ministry said the strong demand underscores the country’s growing appeal to both domestic and international investors. The Gulf state has one of the highest credit ratings of any sovereign. It’s rated Aa2 by Moody’s Investors Service, the same as the UK and South Korea.
The debt is rated Aa2, the third-highest investment grade, by Moody’s and one step lower at AA- by Fitch Ratings.
Last September, the UAE raised $1.5bn from the sale of 10-year bonds that had an order book of more than $6.8bn.
Credit Agricole, Emirates NBD Bank, First Abu Dhabi Bank, HSBC Holdings, JPMorgan Chase and Standard Chartered were hired to arrange the deal.
The UAE’s debt sale comes as Gulf states have been particularly active in the international bond market this year, taking advantage of high demand. Saudi Arabia has sold $17bn of debt, the most of any emerging market, while Qatar and Bahrain have also tapped the market.
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