ADQ Successfully Prices Second US$2 Billion Bond Issuance For London Stock Exchange Listing

Abu Dhabi Developmental Holding Company (ADQ) has successfully priced its second bond issuance, valued at US$2 billion. This bond will be listed on the London Stock Exchange (LSE), following ADQ's initial debt capital markets issuance in May 2024. The new bond aims to diversify ADQ's funding sources, supporting strategic growth initiatives and enhancing its long-term credit offerings for investors.

The issuance was met with significant interest, being oversubscribed by 4.1 times, highlighting confidence in ADQ's robust credit profile and Abu Dhabi's economic stability. The dual-tranche offering consists of a US$1 billion 7-year bond maturing in 2031 and a US$1 billion 30-year bond due in 2054. These bonds have annual coupon rates of 4.375 percent and 5.250 percent, respectively.

The issuance attracted substantial institutional interest from investors across the US, Europe, the Middle East, and Asia. This strong demand allowed the transaction to tighten by 30 basis points from initial pricing thoughts to final pricing. Marcos de Quadros, Group Chief Financial Officer at ADQ, stated, "ADQ’s second bond issuance under its Global Medium Term Note Program reflects our commitment to forward-looking financial management and a strong capital structure. With this issuance, we now offer an expanded bond curve to investors. We appreciate the impressive market response, demonstrated in the oversubscription of 4.1 times across both tranches."

Earlier this year, ADQ issued its first $2.5 billion bond with primary listing on the LSE and secondary listing on the Abu Dhabi Securities Exchange (ADX). This dual-tranche bond included tenors of 5 and 10 years and achieved an oversubscription exceeding 4.4 times.

As of June 30th, 2024, ADQ's total assets were valued at $225 billion. The company holds stakes in over 25 portfolio companies organized into seven economic clusters that cover vital sectors of Abu Dhabi's economy. These sectors include utilities, transportation, healthcare, agriculture, and real estate.

ADQ maintains strong credit ratings with Moody’s rating it Aa2 and Fitch rating it AA, both with stable outlooks. These ratings reflect confidence in ADQ's financial health and strategic direction.

The successful pricing of this second bond issuance underscores ADQ’s commitment to strengthening its financial foundation while supporting key economic sectors within Abu Dhabi through diversified funding strategies.

With inputs from WAM