Abu Dhabi plans to issue first dollar bond in two years


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Abu Dhabi plans to issue first dollar bond in two years

Abu Dhabi, the capital city of United Arab Emirates, economy of which still remains heavily dependent on oil exports, had been working out a plan to issue a dollar-denominated government bond as early as this year, as the oil-rich capital of UAE had been seeking to capitalize low interest rates to ease impacts of a falling crude oil price, at least three sources directly briefed over the subject-matter had unveiled on Sunday, the 1st of September 2019.

On top of that, one of the three sources said on condition of anonymity later on Sunday (September 1st) that the UAE government had already updated its bond insurance plans and had been looking to complete the fundraising campaign before year-end, while another government source familiar with the subject matter had been quoted saying on Sunday (September 1st) that bonds worth of as low as $1 billion would likely to be offered.

While Abu Dhabi appeared to be yearning for its fund-raising campaign amid a lower crude oil price, several analysts were quoted saying that a number of oil-dependent Gulf countries had borrowed billions over the recent years to support its state treasuries, public finances and ambitious infrastructures, but for the moment being, the countries had been struggling to repay its debts while facing tremendous pressure due to a falling crude oil price plausibly stemmed of a havoc-scale US crude inventory build over the past one year and half.