The Emirate of Abu Dhabi completed a $5 billion bond offering that included both the lowest yield achieved and the longest-note issued by a Gulf government.
The offer, which was 4.8-times' oversubscribed, included a $2bn, three-year tranche priced at just 0.83 per cent - a historic low yield for a bond issued by a Gulf sovereign. It also included a 10-year tranche priced at 1.732 per cent and a 50-year note priced at 2.7 per cent.
"The success of this bond issuance, in the midst of the Covid-19 global crisis, demonstrates the robust credit fundamentals and more broadly the strength of Abu Dhabi's economy," Jassem Al Zaabi, chairman of the Abu Dhabi Department of Finance, said.
“The 50-year tranche is a first for not just Abu Dhabi but also for the GCC, and a reflection of formidable investor confidence in our economy, credit strength and long-term outlook.”
The order book for the bond peaked at $24bn, with orders coming from 60 new investors.
Bond yields around the world have been plummeting as governments and central banks have embarked on more than $11 trillion worth of monetary and fiscal stimulus to mitigate the economic effects of Covid-19, which is set to push the world's economy into its deepest recession since the Great Depression.
Bond issuers have looked to take advantage of historically low interest rates. The amount of investment-grade bonds issued this year has already topped last year's total of $1.3tn and could reach $1.9tn by the end of this year, Monica Erickson, head of investment-grade corporates at Doubleline Group told Bloomberg last month.
Abu Dhabi has taken advantage of the competitive pricing environment and as the only AA-rated sovereign issuer in the Gulf was able achieve historic low yields. It is the second time the emirate has tapped bond markets so far this year, following a $7bn issue in April that was more than six times oversubscribed, with 90 per cent of orders coming from outside the Middle East.
"We have the flexibility to act swiftly when a window of opportunity arises. We saw an opportunity to capitalise on favourable funding conditions and the outcome is incredibly positive," Mr Al Zaabi said in an interview with The National.
The proceeds of the bond issuance will allow Abu Dhabi to continue investing in its non-oil sector as the emirate looks to diversify its sources of funding and optimise the deployment of government resources, the emirate's Department of Finance said in a statement.
Citi, Deutsche Bank, First Abu Dhabi Bank, Morgan Stanley, and Standard Chartered were joint lead managers and joint bookrunners for the bond issue.
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The low down on MPS
What is myofascial pain syndrome?
Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
Releasing these nodules requires a hands-on technique that involves applying gentle sustained pressure to release muscular shortness and tightness. This eliminates restrictions in connective tissue in orderto restore motion and alleviate pain. Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.
Killing of Qassem Suleimani
Manikarnika: The Queen of Jhansi
Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Los Angeles, from Dh4,975 return, including taxes. The flight time is 16 hours. Alaska Airlines, United Airlines, Delta Air Lines, Aeromexico and Southwest all fly direct from Los Angeles to San Jose del Cabo from Dh1,243 return, including taxes. The flight time is two-and-a-half hours.
The trip
Lindblad Expeditions National Geographic’s eight-day Whales Wilderness itinerary costs from US$6,190 (Dh22,736) per person, twin share, including meals, accommodation and excursions, with departures in March and April 2018.
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