FIXED INCOME PULSE: LONDON WELCOMES EMIRATE OF ABU DHABI'S $10BN ISSUANCE

London Stock Exchange welcomed Emirate of Abu Dhabi’s third sovereign bond transaction, raising $10bn in three tranches in the largest sovereign transaction on London’s markets in 2019. The deal follows successful issuances from the Emirate of Abu Dhabi in 2016 and 2017. The bond attracted orders of more than $25bn from more than 650 accounts, helping achieve impressive pricing. All three tranches of the transaction priced 15bp inside the initial price guidance, achieving a well-diversified book by geography and type of investors. The Emirate of Abu Dhabi priced the transaction without a deal roadshow, testament to the Abu Dhabi’s strong reputation with global institutional investors, one of the strongest credit ratings in the region and continuous investor engagement.

Global investor base for the Abu Dhabi Sovereign bond

Source: Bloomberg, October 2019

Emirate of Abu Dhabi sovereign bonds listed on London Stock Exchange’s Main Market

Pricing Date

Nominal Size

Tranches

23/09/2019

$10bn

$3bn (2.125%, 5Y)
$3bn (2.500%, 10Y)
$4bn (3.125%, 30Y)

03/10/2017

$10bn

$3bn (2.500, 5Y)

$4bn (3.125%, 10Y)

$3bn (4.125, 30Y)

26/04/2016

$5bn

$2.5bn (2.125%, 5Y)

$2.5bn (3.125%, 10Y)

London remains the preeminent global exchange for jumbo transactions, as highlighted by the chart below.

Source: Dealogic, October 2019. Sovereign and corporate issuances only

As a premier listing venue for sovereign, supranational and agency (SSA) bonds, London Stock Exchange has deep experience in hosting such milestone issuances. London is home to 1239 active SSA bonds, raising $2.9tn in 40 currencies from across the globe and the rating spectrum.

Source: Dealogic, October 2019. Moody’s ratings have been used. When not available, Fitch ratings were converted to Moody’s ratings
*Other includes: India & South Asia, China & HK, US & Canada and Latin America & Caribbean

London remains the global exchange partner of choice for landmark deals, providing access to a truly global investor base, a cost and time-efficient listing process and access to London Stock Exchange’s product range and post-listing Issuer Services. Recent UAE bond issuers on London’s markets include SENAAT, Tabreed, Mubadala, First Abu Dhabi Bank and TAQA. London Stock Exchange is also home to 10 companies from the UAE with a combined market cap of $14.7bn.


For further information, please visit our website, or send us an email at bonds@lseg.com or call +44 (0)207 797 3921.