The United Arab Emirates returned to international bond markets after its debut sale last year, taking advantage of demand for high-quality debt amid mounting concerns over a global recession.
The oil-rich Persian Gulf nation sold $1.75 billion in 10 year bonds and $1.25 billion in notes due in 2052, according to a person familiar with the matter who is not authorized to speak publicly and asked not to be identified.
The 10 year security priced at 100 basis points over Treasuries of similar maturity, while the 30 year so-called Formosa bond debt issued in Taiwan and denominated in a currency other than the Taiwan dollar is at a spread of 175 basis points.
The UAE has outperformed developing peers this month as central banks step up efforts to curb inflation, fuelling concerns that the global economy may be headed for a recession. The nation's debt is rated Aa 2, the third-highest investment grade by Moody s Investors Service, and one step lower at AA by Fitch Ratings.
In October, the UAE sold its first bond in its half-century history as a unified federation, which includes seven emirates including oil-rich Abu Dhabi and commercial hub Dubai. The sheikhdoms set separate budget policies and several of them have tapped the market over the years.
The Age of Credibility for Central Banks is not over, and there is no hope for the Age of Credibility for Central Banks.