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Abu Dhabi Returns to Debt Market With Longest Gulf Bond Ever

  • Emirate priced 3-year, 10- and 50-year dollar notes Tuesday
  • Abu Dhabi raised $10 billion via dollar bonds in April, May
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Abu Dhabi returned to the dollar debt market, selling the longest bond ever offered by Gulf Arab governments as countries in the region raise cash buffers to weather the pandemic and low oil prices.

The capital of the United Arab Emirates raised $5 billion from a three-part offering, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Abu Dhabi offered a yield of 65 basis points over U.S. Treasuries on $2 billion of notes due September 2023, 105 basis points for its $1.5 billion in long 10-year securities and 2.7% for $1.5 billion in bonds due in half a century, which will be its longest yet. Final pricing on all three tranches was lower than initial guidance.