Abu Dhabi Developmental Holding Company (ADQ) announced today the successful pricing of a $2 billion bond. The issuance marks ADQ’s third offering in international debt capital markets and supports the diversification of its funding sources. The combined order book surpassed $7 billion, resulting in an oversubscription of more than 3.5 times
The sovereign investor said proceeds will provide growth capital and fund projects that advance its mandate and long-term growth ambitions.
“We are pleased to have, once again, achieved very broad investor diversification, as well as a strong level of oversubscription across both tranches,” stated Marcos de Quadros, group chief financial officer at ADQ.
ADQ’s widest distribution to Asian investors
ADQ’s bond issuance capitalized on sustained demand for high-quality, investment-grade bonds from emerging markets, while demonstrating the investor’s credit resilience during a period of market volatility and strong investor confidence in Abu Dhabi’s economy.
At pricing, the annual coupon of the five-year $1 billion tranche was fixed at a rate of 4.500 percent, while the ten-year $1 billion tranche achieved a coupon rate of 5.000 percent per annum. The transaction achieved the lowest five-year yield and the second-lowest ten-year yield among non-Sukuk issuances from the GCC region year to date 2025.
The issuance also accomplished broad institutional distribution from major investors across Asia, the U.S., the Middle East, the U.K. and Europe. The transaction tightened by 30 basis points from initial pricing thoughts to final pricing. It also achieved ADQ’s widest distribution to Asian investors to date.
“The success of this issuance demonstrates global investor confidence in ADQ’s credit strength and continued recognition of our value proposition, as well as in the stability and long-term prospects of Abu Dhabi’s economy. It also underlines the appeal of bond issuances with attractive fundamentals in this market environment,” added de Quadros.
Read: UAE’s ADNOC raises $1.5 billion through debut sukuk
ADQ’s total assets grow 23 percent to $251 billion
In September 2024, ADQ completed the issuance of its second bond. The dual-tranche offering included seven- and thirty-year tenors and achieved an oversubscription of more than 4.1 times.
As of December 31, 2024, ADQ’s total assets amounted to $251 billion, reflecting a three-year compound annual growth rate of 23 percent. With a focus on investing in critical infrastructure and global supply chains, ADQ has shareholdings in more than 25 portfolio companies, structured into eight economic clusters which cover key sectors of the Abu Dhabi economy.
The sovereign investor is rated Aa2 by Moody’s and AA by Fitch, both with a stable outlook.
