The Emirate of ABU DHABI returned to the US dollar market for the second time this year on Wednesday with a US$3bn dual-tranche offering that came inside fair value. Abu Dhabi's strategy has changed in recent times from jumbo issuance - exceptional circumstances notwithstanding - to more opportunistic targeted offerings. So just as its last deal in May was a US$2bn 2028 bond issue to take advantage of interest in an off-the-run tenor, this latest offering included 30-year notes at a time when issuance in that part of the curve by high-grade credits has been relatively sparse. "They timed it really well," said a lead. Books on the intra-day trade opened on a 10-year tranche at 90bp area over Treasuries and the 30-year at 130bp area. Investors were told to expect a total deal size of US$2bn-$3bn.
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