Abu Dhabi has received "strong demand" from investors for its $3 billion two-tranche US dollar-denominated bond, the emirate's Department of Finance said.
The bond comprises a $1 billion tranche maturing in three years, and a $2 billion tranche maturing in 10 years, the department said in a statement on Tuesday.
The issuance was five times oversubscribed, with the peak orderbook reaching $18.5 billion.
It "attracted strong demand from international investors, reflecting confidence in Abu Dhabi’s strong credit rating, fiscal strength, and long-term economic prospects", the ministry said.
"Today’s successful dual-tranche issuance - achieving a five time oversubscription and the lowest spreads in Abu Dhabi’s history as well as versus international benchmarks − marks a historic milestone," said Jassem Al Zaabi, chairman of the Department of Finance.
“This record-setting outcome reaffirms Abu Dhabi’s position as a leading and trusted investment destination."
The issuance comes after the emirate issued a $5 billion three-tranche bond last year, which listed on the Abu Dhabi Securities Exchange.
The issuance included a $1.75 billion tranche maturing in 2029 with a coupon rate of 4.875 per cent, a $1.5 billion tranche maturing in 10 years with a coupon rate of 5 per cent, and a $1.75 billion tranche maturing in 2054 with a coupon rate of 5.5 per cent.
Abu Dhabi has strong long-term foreign-currency rating of "AA" with a stable outlook from both Fitch and S&P.
The emirate has been diversifying its economy away from hydrocarbons, with a focus on sectors such as technology and tourism.
Its economy expanded by 3.4 per cent annually in the first quarter of the year, with gross domestic product at Dh291 billion ($79.2 billion), driven by non-oil growth, according to the Statistics Centre - Abu Dhabi.
Abu Dhabi's non-oil sector expanded by 6.1 per cent year-on-year, reaching Dh163.6 billion and contributed 56.2 per cent of the total GDP.
On Monday, Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, also approved the Dh42 billion expansion of a major initiative aimed at improving quality of life in the emirate. The Liveability Strategy – which was launched in 2023 – has already resulted in more than Dh12 billion of investment in 60 projects focused on championing community well-being and public health.
"By diversifying funding sources and accessing global capital markets on competitive terms, we are reinforcing our reputation as a reliable sovereign issuer while securing a lower cost of capital for the strategic entities that drive Abu Dhabi’s growth," said Mr Al Zaabi.
"Our focus remains clear: fiscal discipline, strategic investment, and building a resilient economy that delivers lasting prosperity.”
The latest issuance was managed by a syndicate of financial institutions acting as joint lead managers and joint bookrunners, including Abu Dhabi Commercial Bank, Bank of China, Citi, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, HSBC, ICBC, JP Morgan, Morgan Stanley, SMBC and Standard Chartered Bank.
