Abu Dhabi has launched its maiden $1,000 million bond, becoming the first emirate government to do so.
Abu Dhabi has launched its maiden $1,000 million bond, becoming the first emirate government to do so.The bond is priced at 85 basis points above five-year US Treasury notes and has a coupon rate of 5.5 per cent.'It seems cheap considering the credit quality of Abu Dhabi,' says Chavan Bhoghaita, head of credit research at HSBC Bank Middle East. 'But the pricing reflects [international credit] market conditions.'The issue is expected to be followed by more bonds as the emirate establishes a yield curve against which to price corporate bonds. Dubai could follow with a similar move. Standard & Poor's has rated the five-year issue AA (MEED 6:7:07). You might also like...
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