RIYADH: In a bid to attract investments, the UAE Ministry of Finance has successfully closed its offering of $1.5 billion worth of 10-year US dollar-denominated bonds, set to mature in September 2023, as reported by the Emirates News Agency, also known as WAM.
The offering garnered substantial interest, with the order book quickly exceeding $7.4 billion. By the time the final guidance was released, the transaction was oversubscribed by five times, attracting strong demand from domestic, regional and international investors.
The bonds carry a yield of 4.917 percent, representing a spread of 60 basis points over US Treasury yields. They have been listed on both the London Stock Exchange and Nasdaq Dubai.
Mohamed Al-Hussaini, minister of state for financial affairs, said: “The successful completion of another sovereign bond by UAE is a testament that UAE remains an attractive destination for investors and one of the world’s most attractive investment hubs.”
He added: “The UAE has yet again achieved strong results in its recent bond offering attracting strong and diversified investors demand. The strong order book resulted in price compression of 25 basis points from the initial pricing guidance, with final pricing at US Treasuries plus 60 basis points.”
The 10-year bonds saw a diverse geographic allocation with Middle Eastern investors taking the largest share, accounting for 45 percent of the total, followed by American investors with 21 percent.
Asian investors held an 11 percent stake, while the UK and European investors made up 9 percent and 14 percent, respectively.
The bonds were arranged and offered through a syndicate of joint lead managers and bookrunners comprising Abu Dhabi Commercial Bank, BNP Paribas, Citigroup Global Markets, Emirates NBD Capital, First Abu Dhabi Bank, HSBC Bank, Goldman Sachs, Mashreq Bank and Mizuho.
Dubai property market records $711m in transaction
Dubai’s real estate market recorded 2.613 billion dirhams ($711 million) in transactions, totaling 739 deals on Monday, according to data by Dubai’s Land Department.
The emirate saw 567 sales transactions worth 1.88 billion dirhams, in addition to 155 mortgage deals of 688.9 million dirhams, and 17 gift deals amounting to 44.05 million dirhams.
The sales comprised 456 villas and apartments totaling 1.04 billion dirhams, as well as 111 land plots valued at 840.25 million dirhams.
Mortgages involved 122 villas and apartments with a combined value of 314.1 million dirhams and 33 land plots worth 374.8 million dirhams.