The UAE sold USD 1.5 bn-worth of eurobonds in its first sale of the paper since September, Bloomberg reports, citing people familiar with the matter. The issuance was 3.8x oversubscribed, with investors reportedly submitting bids for more than USD 5.75 bn, the business information service says.

About the issuance: The USD-denominated eurobonds were sold at 60 bps above US Treasuries, after the sale drew in significant investor interest. The Finance Ministry had initially guided on a spread of 90 bps over Treasuries, Reuters had reported earlier.

While the UAE could do without the funds, the debt sale “could be aimed at improving liquidity in the debt curve,” Zeina Rizk, co-head of fixed income at Amwal Capital Partners in Dubai told Bloomberg. Investors are likely to keep trading the bonds if the issuer has “plenty” of outstanding debt maturities, making the bonds “remain in the market, to keep the curve liquid.”

REMEMBER- Last April, Abu Dhabi sold its first eurobond issuance in three years, raising around USD 5 bn in one of the biggest emerging market transactions of the year.

The UAE is a top-rated issuer, holding an Aa2 credit rating from Moody’s and an AA- rating from Fitch with a stable outlook from both agencies.

ADVISORS- Credit Agricole, Emirates NBD Bank, First Abu Dhabi Bank, HSBC Holdings, JPMorgan Chase & Co. and Standard Chartered acted as arranging banks on the issuance, according to Bloomberg.

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