Abu Dhabi has finalized a $ 2 billion bond issue with a maturity of seven years, the emirate’s media office said on Wednesday.

The issue posted the tightest yield ever for emerging market sovereign debt.

“The bonds have been well received by fixed income investors, including quality US companies and portfolios, effectively expanding the investor base,” the Abu Dhabi media office said.

The show was oversubscribed by more than three and a half times.

Sovereigns and semi-public companies in the region are looking to take on debt to take advantage of low interest rates.

In June 2020, Abu Dhabi reopened the $ 7 billion multi-tranche international bond offering with a $ 3 billion issue.

A tap issue allows borrowers to sell short-term debt securities from past issues.

Prior to that, Abu Dhabi raised a $ 10 billion bond in September 2019.

Abu Dhabi’s economy is expected to recover this year, with higher oil prices and improving economic activity as the effects of the pandemic abate.

The emirate’s real gross domestic product is expected to return to 2019 levels by 2023, according to S&P estimates.

This week, the rating agency also confirmed the investment grade rating of Abu Dhabi, due to the resilience of its economic fundamentals and its significant fiscal cushions supported by revenues from the hydrocarbon sector.

The “AA / Stable / A-1 +” rating and stable outlook for the emirate reflect the credit rating agency’s expectations that its fiscal position will remain strong over the next two years.

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