Federation sells $4 billion in bonds with maturities of 10, 20 and 40 years

The United Arab Emirates priced its first dollar bonds as a combined federation, collecting bids for more than five times the amount offered.

The federation, made up of seven emirates including Abu Dhabi and Dubai, priced the $10 billion, 20-year and 40-year dollar debt at $4 billion. The order book exceeded $22 billion.

The UAE received orders for the first bonds worth more than $20 billion.

Government officials and bankers have spent the past two days gaining support for the UAE’s proposal, conducting global calls with investors from New York and London to Singapore and Tokyo. Proceeds from the debt will go to infrastructure projects and investments in the national sovereign wealth fund.

The sale comes as investors prepare for the Federal Reserve to begin rolling back stimulus. Emerging-market bond sales resumed in September, with the government and companies issuing $71 billion after selling $90 billion in the previous 10 weeks.

Debt sold by Egypt, Nigeria, Indonesia, Turkey, Chile, Serbia and Hungary met with strong demand from investors.

UAE debt is rated Aa2 by Moody’s Investors Service, the third-highest investment grade rating and one notch below Fitch Ratings’ AA rating.

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