Thank you for reading the news about APICORP’s debut green bonds raise $750m and now with the details
Jeddah - Yasmine El Tohamy - The United Arab Emirates marketed a triple-tranche U.S. dollar-denominated bond on Wednesday, the first issued by the federal government rather than individual emirates, in a sale to be concluded the same day, a document showed.
The bonds have tranches of 10, 20, and 40 years.
The 10-year notes were offered with an initial price guidance of about 105 basis points (bps) over U.S. Treasuries, the 20-year at about 135 bps over the same benchmark, and the 40-year at about 3.6 percent.
The 40-year portion will be Formosa bonds, which are debt securities sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The UAE finance ministry is expected to raise between $3 billion and $3.5 billion, two sources familiar with the matter have told Reuters.
The federal government has never issued bonds before but several of the seven emirates that it comprises have, most notably the capital Abu Dhabi and commerce hub Dubai.
"They'll likely land roughly 10 bps wider than Abu Dhabi. Given it's a debut, I expect there'll be a new issuance premium," a fixed income strategist said.
Moody's has assigned the UAE bonds an Aa2 rating in line with Abu Dhabi's, "supported by the assumed full backing of the government of Abu Dhabi and its strong balance sheet".
Fitch Ratings rated the UAE AA-(minus), which reflects "the likelihood of support from Abu Dhabi (AA/Stable) in the event of need."
The proceeds will be used to finance cabinet-approved infrastructure projects and back investments by the Emirates Investment Authority, the UAE's only federal sovereign wealth fund.
These were the details of the news APICORP’s debut green bonds raise $750m for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
