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(Bloomberg) -- Abu Dhabi is selling its first eurobonds in about three years, as expectations fade that US interest rates will fall soon. 

The oil-rich sheikhdom, which is part of the United Arab Emirates, is offering a dollar deal with tranches of five, 10 and 30 years, according to a person familiar with the matter. The final terms, including the size and yields, may be announced later on Tuesday. 

Read: Abu Dhabi Plans Eurobond Sale to Join Emerging-Market Debt Rush

Abu Dhabi, rated at the third-highest investment grade by the three major agencies, is tapping markets as the odds of imminent rate cuts recede. Emerging-market bond sales had a record start to the year as expectations built for monetary easing by the Federal Reserve.

With a $3 billion bond falling due in September, the emirate is following the likes of Saudi Arabia in borrowing abroad this year. 

Though Abu Dhabi’s strong finances suggest it “doesn’t need the money,” the offering allows it to maintain a presence in the market in anticipation that borrowing costs could stay elevated at a time when geopolitical risks are sharply on the rise, according to Mehdi Popotte, senior portfolio manager at Arqaam Capital. 

The emirate’s issuance is also set to “pave the way for Abu Dhabi’s government-related entities to issue further later this year,” Popotte said.

Abu Dhabi Commercial Bank PJSC, Citigroup Inc., First Abu Dhabi Bank PJSC, HSBC Holdings Plc, JPMorgan Chase & Co., Morgan Stanley and Standard Chartered Plc are managing the bond sale.

The five year portion has initial spread guidance of around 70 basis points over US Treasuries, while the 10-year debt has guidance of 85 basis points and the longest tranche 125 basis points.

--With assistance from Olga Voitova.