Abu Dhabi Developmental Holding Company PJSC (ADQ) recently announced the successful pricing of its second bond issuance, which amounts to $2 billion and will be listed on the London Stock Exchange (LSE). This issuance is part of ADQ’s strategic plan to diversify its funding sources and support its growth initiatives. The strong credit profile of ADQ and the financial resilience of Abu Dhabi’s economy resulted in the issuance being oversubscribed by 4.1 times. The dual-tranche offering includes a $1 billion 7-year bond and a $1 billion 30-year bond with competitive coupon rates. The issuance attracted major investors globally and tightened 30bps from initial pricing thoughts to final pricing.
Marcos de Quadros, group chief financial officer at ADQ, highlighted the importance of the issuance in expanding ADQ’s bond curve for investors. The positive market response with the oversubscription across both tranches demonstrates investor confidence in ADQ’s financial management and capital structure. ADQ’s previous inaugural bond issuance of $2.5 billion earlier this year also achieved remarkable success with oversubscription of more than 4.4 times. This further showcases the market’s trust in ADQ’s financial offerings and investment opportunities.
As of 30 June 2024, ADQ’s total assets totaled $225 billion, with holdings in over 25 portfolio companies across seven economic clusters covering key sectors of the Abu Dhabi economy. These sectors include critical infrastructure assets such as utilities, transportation, healthcare, agriculture, and real estate. ADQ’s credit ratings from Moody’s at Aa2 and Fitch at AA, both with a stable outlook, further solidify its position as a trusted investment entity in the market. The success of its bond issuances reflects ADQ’s commitment to sound financial management and strategic growth strategies.
The completion of the second bond issuance under ADQ’s Global Medium Term Note Program marks a significant milestone for the company in expanding its investor base and attracting global institutional investors. The issuance’s oversubscription and strong investor demand reinforce ADQ’s position as a preferred investment destination in the region. The competitive coupon rates and diverse funding sources through the bond issuances enable ADQ to finance its strategic growth initiatives and contribute to the economic development of Abu Dhabi.
With the listing of the $2 billion bond on the LSE, ADQ aims to further enhance its investor base and provide opportunities for global investors to participate in Abu Dhabi’s economic growth. The successful pricing of the bond and the broad institutional distribution underscore ADQ’s strong credit profile and financial standing in the market. The issuance’s positive response from investors across different regions reflects the growing interest in ADQ’s investment offerings and its potential for long-term growth and stability in the market.
In conclusion, ADQ’s successful pricing of its second bond issuance reflects the company’s commitment to financial excellence and strategic growth initiatives. The oversubscription and strong demand for the bond offerings demonstrate investor confidence in ADQ’s credit profile and the economic resilience of Abu Dhabi. With the issuance of the $2 billion bond and its expansion of the bond curve for investors, ADQ continues to solidify its position as a leading investment and holding company in the region. The positive market response and investor interest in ADQ’s bond issuances pave the way for future growth and investment opportunities for the company.
