Abu Dhabi Developmental Holding Company (ADQ) announced its inaugural $2.5 billion bond listing on the London Stock Exchange (LSE). This marks a significant step in diversifying the Abu Dhabi-based investment and holding company’s funding sources and supporting its strategic growth agenda.
ADQ’s combined order book peaked at over $11 billion, reflecting an oversubscription of over 4.4 times for the listing. At pricing, ADQ’s annual coupon of the five-year $1.25 billion tranche was fixed at a rate of 5.498 percent. Meanwhile, the 10-year $1.25 billion tranche achieved a coupon rate of 5.5565 percent per annum.
Leveraging favorable market conditions and a strong investor appetite for high quality, ADQ’s listing attracted major investors from Asia, the U.S., the Middle East, the U.K., and Europe.
Facilitating further investments
ADQ will utilize the proceeds from the listing as growth capital, which will facilitate further investments in strategic initiatives that contribute to ADQ’s aim of expanding into key sectors.
Commenting on the listing, 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.” Alsuwaidi lauded the stability and resilience of the wider Abu Dhabi economy which supports the company’s growth. Alsuwaidi added: “It is reflective of investor confidence in Abu Dhabi’s capital markets and in ADQ’s compelling growth prospects.”
“Achieving an oversubscription of more than 4.4 times, the issuance demonstrates the commercial attractiveness of our business, which effectively balances non-financial impact with robust financial returns,” stated Marcos de Quadros, CFO of ADQ.
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Utilizing debt capital markets
ADQ recently established its Global Medium Term Note Program, which the listing falls under. The program will enable the company to utilize debt capital markets to fund long-term investments.
In 2023, the company’s total assets reached $196 billion. Moreover, it has shareholdings in more than 25 portfolio companies under seven economic clusters. Those clusters cover key sectors of the transforming economy and include numerous critical infrastructure assets. Moody’s rated ADQ Aa2 while Fitch rated the company AA, both with a stable outlook.
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