UAE – Mubasher: Abu Dhabi Developmental Holding Company (ADQ) has listed its recently issued $2.5 billion bonds on the London Stock Exchange (LSE).
The bond issuance was oversubscribed by 4.40 times, receiving orders at a total value of $11 billion, according to a press release.
The bonds were issued on 30 April 2024, in two tranches, each valued at $1.25 billion with five- and 10-year maturities.
The coupon of the five-year tranche was fixed at a rate of 5.49%, while the 10-year tranche achieved a coupon rate of 5.55% per year.
The issuance attracted investors from Asia, the US, the Middle East, UK, and Europe.
The offering's proceeds will fuel growth and support strategic initiatives, furthering ADQ's mandate and expanding into key sectors, driving economic prosperity in Abu Dhabi and beyond.
Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ, said: “The significant market response to our inaugural bond issuance validates the strength of ADQ's credit profile, which benefits from the stability and resilience of the wider Abu Dhabi economy.”
“Furthermore, it is reflective of investor confidence in Abu Dhabi’s capital markets and in ADQ's compelling growth prospects, which are anchored in the execution of our transformative mandate in sectors providing essential services and products to people in the Emirate and beyond,” Alsuwaidi added.
Marcos de Quadros, CEO at ADQ, stated: “The success of the issuance under our newly established Global Medium Term Note Programme highlights strong investor appetite, underpinned by robust market fundamentals.”
“Going forward, the Programme will enable us to utilise debt capital markets as an effective option to fund our long-term investments and continue to support Abu Dhabi’s sustainable economic development,” he noted.
As of 31 December, ADQ's assets reached $196 billion, with holdings in more than 25 companies across seven economic clusters, including critical infrastructure in utilities, transportation, healthcare, agriculture, and real estate. ADQ is rated Aa2 by Moody’s and AA by Fitch, both with a stable outlook.
