Treasury Foreign Borrowing Decision: Issuing 7 and 12-Year Maturity Bonds

The Treasury is Conducting the First Foreign Borrowing Auction of the Year

The Ministry of Treasury and Finance has authorized Abu Dhabi Commercial Bank, BNP Paribas, Citi, Goldman Sachs, and Standard Chartered banks to carry out the issuance of dual-tranche bonds in US dollars with maturities of 7 and 12 years within the framework of the 2026 external financing program.

What Are the Expectations?

According to Bloomberg, the initial yield expectation for the 7-year tranche issuance is shaped around 6.65 percent, while the expectation for the 12-year issuance points to 7.2 percent.

Current Situation and Past Performance

The Ministry of Treasury and Finance closed the year 2022 with a borrowing of 13 billion dollars. This new step is seen as part of the external financing strategies for the year 2023.