For the first time .. the UAE begins to market federal dollar bonds

How much is Abu Dhabi expected to charge from marketed securities?

About three billion dollars.

What are the most important banks advising the Government of the United Arab Emirates on securities?

Banks “City”, “HSBC”, “First Abu Dhabi”, “JPMorgan”, “Standard Charter” and “Bank of America Securities”.

By the time Reuters says it could start this week, the United Arab Emirates government is preparing to begin marketing its first dollar worth of federal bonds soon.

The company cited its sources that banks would advise the government on the issuance of securities, led by Citi, HSBC, First Abu Dhabi, JPMorgan and Standard Charter and Bank of America Securities.

It said Abu Dhabi was likely to raise about $ 3 billion, and that Emirate sold $ 2 billion out of $ 7 billion in May, after raising $ 15 billion in bond issuance last year.

The UAE government has not previously issued bonds, but some of its seven emirates, including the capital Abu Dhabi and financial center Dubai, have taken the initiative.

Last May, Moody’s credit rating agency expected the UAE to issue its first local currency this year.

Last January, the UAE Cabinet approved a public debt strategy aimed at improving the local bond market.

At the end of June 2021, Abu Dhabi had $ 39.5 billion in outstanding bonds, 3.7 billion in loans to local banks and 2.4 billion in securities obligations, while state-owned companies borrowed $ 59.2 billion until the end of last June. Year.

The Dubai government also started marketing bonds in two months, last month, in its first sale in six years in the public debt market; Bonding opportunities showed that Dubai’s budget for this year would record a deficit of $ 3.2 billion.

Although the government’s direct debt stood at about $ 34 billion at the end of June, Dubai did not consolidate the total estimate of government institutions’ total outstanding debt.

In July, Standard & Poor’s said the Dubai economy could shrink by 11% this year.