Abu Dhabi Sold $7 Billion of Bonds to Counter Falling Oil Prices

The emirate of Abu Dhabi said on Sunday it had sold $7 billion of bonds in the third major sale this month by Gulf sovereigns seeking to counter slumping oil prices.

OPEC kingpin Saudi Arabia last week raised $7 billion in a bond sale, while gas-rich Qatar sold bonds worth $10 billion two weeks ago.

Abu Dhabi, which has the greatest sovereign riches subsidize in the Gulf Cooperation Council (GCC), said that its contribution was oversubscribed by in excess of multiple times. 

The exchange contained three tranches-a $2 billion five-year tranche, a $2 billion 10-year fragment, and a third tranche of $3 billion developing following 30 years - the Abu Dhabi branch of money said in an announcement. 

The most extravagant of seven sheikhdoms that make up the United Arab Emirates, Abu Dhabi sits on the main part of the league's oil riches. 

Saudi Arabia's account service said its universal bond



issuance pulled in offers worth $54 billion, in excess of multiple times the estimation of its contribution.

Qatar's finance ministry said its own sale was oversubscribed by more than four times.

The Kuwaiti government has sent legislation to parliament seeking to borrow $65 billion over the next 10 years.

The six GCC member states, which also include Bahrain and Oman, depend heavily on oil income for between 65 percent and 90 percent of public revenues.

Global oil prices have slumped this year due to population lockdowns to forestall the spread of coronavirus and a price war between Saudi Arabia and Russia.

An agreement by OPEC and its allies, including Russia, to cut output by a record 9.7 million barrels per day last week failed to revive prices.

According to the International Monetary Fund, the combined economies of GCC states are forecast to shrink by 2.7 percent this year.