DUBAI: Abu Dhabi sold $2 billion in seven-year bonds on Tuesday in its first foray into the international debt markets this year, raising cash for state coffers despite a recent rebound in oil prices.

The oil-rich emirate sold the bonds at 45 basis points (bps) over US Treasuries. That was tightened from initial guidance of 70-75 bps over Treasuries after the debt sale received over $6.9 billion in orders. The United Arab Emirates, where Abu Dhabi is the capital, was hit hard by the Covid-19 pandemic and last year's crash in oil prices, but a rebound in global crude demand as economies re-open has reduced the urgency to borrow for budget purposes. Citi, First Abu Dhabi Bank, HSBC, JPMorgan and Standard Chartered are joint lead managers and joint bookrunners for the deal, according to a document from one of the banks, seen by Reuters.