Abu Dhabi to Roadshow Benchmark Eurobond This Week

LONDON - Abu Dhabi will launch a benchmark dollar-denominated eurobond following investor meetings in the US and Europe commencing this week, Citigroup, one of the arrangers of the deal said.

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By (Reuters)

Published: Sun 22 Mar 2009, 11:49 PM

Last updated: Sun 5 Apr 2015, 9:43 PM

The bond is part of a global medium term note programme that the emirate has mandated Citi, Deutsche Bank and JPMorgan to arrange, Citi said in an e-mail.

Abu Dhabi, along with the other six emirates in the United Arab Emirates, has seen a six-year economic boom fade as a result of falling oil prices and recession in the industrialised world.

But recent easing of global credit conditions and improved risk appetite is expected to help the issue, one of several recent Eurobond sales by emerging state borrowers.

The cost of insuring Abu Dhabi’s debt in the credit default swaps (CDS) market has fallen sharply since February and now trades at around 370 basis points, meaning it would cost $370,000 a year to protect $10 million of five-year debt, down from highs above 440 basis points.

(Reuters)

Published: Sun 22 Mar 2009, 11:49 PM

Last updated: Sun 5 Apr 2015, 9:43 PM

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