Abu Dhabi Said to Meet Asia Fixed-Income Investors This Week

Updated on
  • Roadshows in Hong Kong, Taipei, Singapore to start on Monday
  • Abu Dhabi last sold bonds in April raising $5 billion

Abu Dhabi Said to Meet Asia Investors This Week

Abu Dhabi, holder of about 6 percent of the world’s oil reserves, will hold fixed-income investor meetings in Asia this week, a person familiar with the matter said.

The capital of the United Arab Emirates will meet investors in Hong Kong, Taipei and Singapore from Monday, the person said, asking not to be identified because he wasn’t authorized to speak publicly. The meetings are arranged by HSBC Holdings Plc and it isn’t clear if the emirate plans to sell bonds after the roadshow, said the person.

Gulf Arab monarchies are selling bonds to shore up public finances after the slump in oil prices put a strain on government budgets. Kuwait picked six banks to advise on its first international debt sale, people familiar with the matter said this week. Saudi Arabia, Qatar and Abu Dhabi raised more than $30 billion from global bond markets last year to finance their budget deficits.

Abu Dhabi, whose debt carries the third-highest investment grade at Standard & Poor’s Global Rating, raised $5 billion last April in its first bond sale in seven years. Fitch Ratings affirmed its third-highest grade for the sheikdom on Monday.

The emirate’s key credit strengths are "its strong fiscal and external metrics and high GDP per capita, balanced by high dependence on hydrocarbons, a relatively weak policy framework, and weak data availability compared with peers," Fitch said. The agency expects Abu Dhabi to post a deficit of 5.9 percent of GDP this year and a surplus of 1.5 percent next year.

(Updates with Fitch affirmation in fourth paragraph.)
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