Abu Dhabi’s ADQ has listed its debut $2.5 billion bond on the London Stock Exchange, as part of a significant step in diversifying its funding mix.
Leveraging favourable market conditions and continued investor appetite for high-quality, investment-grade bonds by emerging market issuers, the combined order book peaked at over US$11 billion, reflecting an oversubscription of more than 4.4 times.
At pricing, the annual coupon of the five-year $1.25 billion tranche was fixed at a rate of 5.5%, while the ten-year $1.25 billion tranche achieved a coupon rate of 5.6% per annum.
The proceeds from the offering will serve as growth capital and facilitate further investments in strategic initiatives that contribute to the realisation of ADQ’s mandate.
“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,” said Mohamed Hassan Alsuwaidi, Managing Director and CEO of ADQ.
ADQ is rated Aa2 by Moody’s and AA by Fitch, both with a stable outlook. The holding firm’s total assets amounted to $196 billion as of December 31, 2023. It owns stakes in more than 25 portfolio companies, structured into seven economic clusters which cover key sectors of the transforming economy.
