Abu Dhabi raised $ 5 billion through a 3-tranche bond offering yesterday, which is the emirate’s third step this year after it had previously raised $ 10 billion.
A document issued by one of the banks leading the deal showed that Abu Dhabi sold three-year bonds worth $ 2 billion with a yield of 65 basis points over US Treasury bonds, and ten and a half years bonds worth $ 1.5 billion with a yield of 105 basis points over the same benchmark index. And 50-year bonds worth $ 1.5 billion, with a yield of 2.7 percent.
Commenting on the issue, Bloomberg News confirmed that Abu Dhabi enjoys a good financial position that qualifies it to deal safely with the current fluctuations in oil prices.
A report by the agency said that bonds are a test for global bond markets, after they have been hit by recession since the beginning of this summer, adding that Abu Dhabi, through these bonds, has opened the appetite of global investors.
A financial analyst said that Abu Dhabi is well-equipped to deal with the impact of the current fluctuations in oil prices in the medium term, with its amazing net assets that give it huge financial buffers and extended time scales.
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