Federal Government of the United Arab Emirates’ First Bond Offering

Clifford Chance advised the Federal Government of the United Arab Emirates on the deal. Latham & Watkins advised the arrangers and dealers.

The Federal Government of the United Arab Emirates, acting through the Ministry of Finance (the “Federal Government”) established its Global Medium-Term Note Programme and inaugural issuances thereunder.

The Federal Government issued U.S.$4bn across three tranches: (i) U.S.$1bn 2.000 per cent. Notes due 2031 (the “2031 Notes”); (ii) U.S.$1bn 2.875 per cent. Notes due 2041 (the “2041 Notes”); and (iii) a Formosa tranche of U.S.$2bn 3.250 per cent. Notes due 2061 (the “Formosa Notes”). The Notes were issued in accordance with Regulation-S/Rule 144A of the U.S. Securities Act of 1933, as amended, and all three tranches are expected to be listed on the London Stock Exchange, Nasdaq Dubai and the Abu Dhabi Securities Exchange. The Formosa-tranche will additionally also be listed on Taipei Stock Exchange.

Although individual emirates of the United Arab Emirates have issued in the international capital markets before, this transaction was the first time the Federal Government accessed the international capital markets. The Federal Government intends to use the proceeds for its domestic budgetary purposes in compliance with its Public Debt Strategy.

With respect to the issuance of the 10-year and 20-year notes, Abu Dhabi Commercial Bank, BofA Securities, Citigroup, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, J.P. Morgan, Mashreqbank, and Standard Chartered Bank acted as joint lead managers. With respect to the issuance of the 40-year Formosa notes, Citibank Taiwan Limited, HSBC Bank (Taiwan) Limited, J.P. Morgan Securities (Taiwan) Limited and Standard Chartered Bank Taiwan Ltd acted as joint lead managers, while Abu Dhabi Commercial Bank, BofA Securities, Emirates NBD Capital, First Abu Dhabi Bank, and Mashreqbank acted as structuring agents. 

Clifford Chance’s team comprised partner and Head of Middle East Capital Markets, Stuart Ure (Picture – Dubai), U.S. Securities partner, John Connolly (London), Rafe Khokhar (Senior Associate, Dubai), Chris Osborne (US Senior Associate, London), Kelly Frevele (US Associate, London), Sophie Wilkinson (Associate, Dubai), and Ursula Gil (Capital Markets Knowledge Director, Dubai).

Latham advised on English law, US law, and UAE law matters with a team led by Dubai partner Nomaan Raja and counsel Basil Al-Jafari. New York partner Bora Bozkurt and associate Ted Gkoo advised on US tax matters.

Involved fees earner: John Connolly – Clifford Chance; Kelly Frevele – Clifford Chance; Ursula Gil – Clifford Chance; Rafé Khokhar – Clifford Chance; Christopher Osborne – Clifford Chance; Stuart Ure – Clifford Chance; Sophie Wilkinson – Clifford Chance; Basil Al-Jafari – Latham & Watkins; Bora Bozkurt – Latham & Watkins; Ted Gkoo – Latham & Watkins; Nomaan Raja – Latham & Watkins;

Law Firms: Clifford Chance; Latham & Watkins;

Clients: Abu Dhabi Commercial Bank; Bank of America Securities; Citibank Taiwan Limited; Citigroup Inc.; Emirates NBD Capital Limited; First Abu Dhabi Bank PJSC; Government of the United Arab Emirates; HSBC; HSBC Bank (Taiwan) Limited; J.P. Morgan Securities LLC; Mashreqbank; Standard Chartered Bank; Standard Chartered Bank (Taiwan) Limited ;

Author: Giulia Di Palma