UAE federal government bonds tightened after $20 bln+ orders – Reuters

A woman takes a picture with a smartphone of the upscale Marina district from the Palm Tower in Dubai, United Arab Emirates, June 9, 2021. Picture taken June 9, 2021. REUTERS/Christopher Pike

DUBAI, Oct 6 (Reuters) – The United Arab Emirates federal government tightened the price guidance for its debut bonds, which comprise three U.S. dollar-denominated tranches, after drawing more than $20 billion in orders, bank documents showed on Wednesday.

The bonds were tightened to offer around 80 basis points (bps) over U.S. Treasuries (UST) for a 10-year portion, about 110 bps over UST for a 20-year tranche and around 3.3% for 40-year Formosa bonds, according to the documents from banks on the deal, which is expected to close later on Wednesday.

Demand was skewed to the 10-year tranche, the documents said.

Initial guidance was about 105 bps over UST for the 10-year paper, around 135 bps over the same benchmark for the 20-year bonds and about 3.6% for the 40-year notes.

Reporting by Yousef Saba; Editing by Andrew Heavens

Our Standards: The Thomson Reuters Trust Principles.