Fixed Income Pulse: London welcomes Emirate of Abu Dhabi's $10bn issuance

deal_at_a_glance

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

 

global investment base

 

 

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

Price Date Nominal Size Tranches
23/09/2019 $10 bn $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 (3.123%, 10Y)

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

 

issuances across key exchange

 

Sovereign listing in London graph 1

Sovereign listing in London graph 2

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 bonds@lseg.com or call +44 (0)207 797 3921.

More recent

A step towards the analysis of anything, by anyone, anywhere: The Oxford Nanopore IPO

Oxford Nanopore’s co-founder and CEO Dr Gordon Sanghera describes why the company’s IPO was both “timely and natural” and supports the company’s ambitious growth plans.

Learn more
Supporting issuers with ESG data

ESG data and disclosure: a new tool for issuers

The number and scale of investors demanding greater disclosure of ESG-related data and integrating ESG into their capital allocation decision making continues to gather pace around the world.

The BlackRock Global Client Sustainable Investing Survey[1] indicated that investors plan to

Learn more
London prepares for India’s highly anticipated Overseas Listing Policy

The landscape of IPO opportunities for ambitious, growth-hungry Indian companies is set to change dramatically once India’s forthcoming Direct Overseas Listing Policy is introduced.

This new policy will allow Indian incorporated companies to list on select overseas stock exchanges by issuing their common equity shares to overs

Learn more
Going direct: a Wise decision

Not every listing on the public markets has the aim of raising fresh capital. For fast-growing international technology company Wise, its Direct Listing on the Main Market of London Stock Exchange provides a way to broaden its ownership while remaining focused on its mission. Co-founder and CEO Kristo Käärmann explains their novel thinking and approach.

Learn more