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ABU DHABI / WAM
Abu Dhabi will sell $10 billion of bonds in a three-part debt deal in its first international offering in two years as it takes advantage of relatively low borrowing costs.
The oil-rich emirate is offering $3 billion in five-year fixed notes, $3 billion notes due 2029 and $4 billion in 30-year notes, according to a person familiar with the sale.
The emirate is taking advantage of investor demand for high quality debt amid concerns over the US-China trade war and slowing global growth. Its credit rating is among the strongest in the Middle East and Africa, and the cost to insure its debt against default is the lowest in the region.
The new securities will likely be rated Aa2 by Moody’s Investors Service Inc. and AA by S&P Global Ratings and Fitch Ratings Ltd.
“With a fortress-like balance sheet, they can afford to come to market at minimal or no concession,†Patrick Wacker, a fund manager for emerging-market fixed income at UOB Asset Management Ltd. in Singapore.