Abu Dhabi Sells $3B Bond After Strong Investor Demand
Abu Dhabi has successfully raised $3 billion through a new bond sale, which received very strong interest from global investors. Demand was so high that investor orders crossed $16 billion, more than five times the amount offered.
Details of the bond sale
The fundraising was split into two parts, also called tranches. The first part was a three-year bond worth $1 billion, which carries a coupon rate of 3.6%. This means investors will earn 3.6% interest each year. The pricing was attractive because the bond yield was only 10 basis points (0.1%) above US Treasuries, and tighter than initial market guidance.
The second part was a 10-year bond worth $2 billion. It was priced with a coupon rate of 4.25%, which is 18 basis points above US Treasuries.
Both bonds are senior unsecured notes and carry high credit ratings of AA from S&P and Fitch, in line with Abu Dhabi’s strong sovereign ratings of Aa2/AA/AA. The bonds will be listed on the London Stock Exchange as well as the Abu Dhabi Securities Exchange (ADX).
Strong investor interest
The issuance received orders worth over $16 billion, not including demand from banks managing the deal. This shows strong global confidence in Abu Dhabi’s financial position. The high demand also allowed Abu Dhabi to price the bonds more favorably.
The main banks involved as coordinators and bookrunners were Citi, First Abu Dhabi Bank (FAB), Goldman Sachs, HSBC, Morgan Stanley, and Standard Chartered. They were joined by Abu Dhabi Commercial Bank, Bank of China, Emirates NBD, ICBC, JPMorgan, and SMBC.
Previous government bond listings
This is not the first major bond activity from Abu Dhabi this year. In June, the Abu Dhabi Securities Exchange announced the listing of $5 billion worth of government bonds. These were issued in three parts:
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The first tranche was $1.75 billion with a fixed rate of 4.9%, maturing in 2029.
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The second was $1.5 billion with a 5% rate, maturing in 2034.
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The third was $1.75 billion with a 5.5% rate, maturing in 2054.
These listings marked an important step in expanding the local debt market.
The UAE’s bond market plans
Younis Haji AlKhoori, under-secretary of the UAE’s Ministry of Finance, has said the country is working on new plans to issue bonds in UAE dirhams. The goal is to build a stronger local bond market by creating a yield curve for the national currency. A clear yield curve helps investors better understand returns and risks, while also giving companies and the government more tools to raise money.
AlKhoori explained that developing the domestic bond market will increase liquidity, support financial stability, and make the UAE even more attractive to investors. He also stressed that the UAE’s debt-to-GDP ratio remains at safe levels, as government borrowing across different emirates is managed carefully.
Conclusion
Abu Dhabi’s latest $3 billion bond sale shows the emirate’s ability to attract strong global demand thanks to its financial strength and high credit ratings. Together with ongoing efforts to develop a local dirham-denominated bond market, these moves underline the UAE’s strategy to strengthen its financial system and investment climate.
Published: 29th September 2025
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