Abu Dhabi raises another USD 2.5 bn through bond reopenings

Abu Dhabi has returned to debt markets with another USD 2.5 bn offering. The emirate raised the funds through two bond reopenings on 15 April, according to Department of Finance notices (pdf, pdf). The issuance included USD 1.5 bn of 5.0% notes due 2034 and USD 1 bn of 4.875% notes due 2029.

Both tranches were consolidated into existing bond series under Abu Dhabi's global medium-term note program, bringing each to USD 3 bn outstanding. The 2029 series has now three taps since April 2024, while the 2034 series has seen two over the same period.

SOUND SMART- Issuing existing lines makes it easier to roll over maturing bonds and quicker to re-invest since it's directed to current bondholders, many of whom are institutional, economist Hamzeh Al Gaood tells us.

REFRESHER- The issuance comes months after Abu Dhabi raised USD 3 bn from its first bond sale of 2026, a dual-tranche offering that attracted more than USD 12.7 bn in orders.

Why keep issuing? Abu Dhabi isn’t short on liquidity. Rather, “the bond issuance follows the pre-war pattern of issuing debt regardless of fiscal position, to help inject more capital without eroding reserves,” Al Gaood says. The emirate has increasingly used debt sales to maintain a benchmark yield curve and support the development of local and international debt markets, he previously told us. Government debt stood at just 17.4% of GDP at the end of 2024, well below peer medians.

The war impact: The debt management strategy has not shifted; rather, its end goal has shifted from purely diversifying sources of capital to injections aimed at mitigating some of the war's effects on the economy, he added.

The fiscal backdrop remains strong: Fitch has recently reaffirmed the emirate's AA sovereign rating with a stable outlook, citing “very strong fiscal and external metrics” and sovereign net foreign assets equivalent to around 291% of GDP. The agency expected borrowing to rise as Abu Dhabi increases support for key projects and government-related entities, but still views its balance sheet as among the strongest globally.