emirates7 - Abu Dhabi Developmental Holding Company (ADQ) has successfully priced its second bond issuance, raising $2 billion. This follows ADQ's initial entry into the debt capital markets in May 2024. The bonds will be listed on the London Stock Exchange (LSE).
This latest issuance aims to broaden ADQ’s funding sources to support the financing of strategic growth projects and extend its long-term credit offerings for investors. The bond issuance was heavily oversubscribed, attracting 4.1 times the demand. It consists of two tranches: a $1 billion 7-year bond maturing in 2031, with an annual interest rate of 4.375%, and a $1 billion 30-year bond due in 2054, offering an annual coupon of 5.250%.
The bonds attracted strong institutional interest from major investors across the US, Europe, the Middle East, and Asia, allowing ADQ to reduce final pricing by 30 basis points from its initial guidance.
Marcos de Quadros, ADQ’s Group Chief Financial Officer, noted that this second bond issuance, part of ADQ's Global Medium Term Note Program, reflects the company's proactive financial management and robust capital structure. He expressed gratitude for the overwhelming market response, as seen in the 4.1 times oversubscription of both tranches.
Earlier in 2024, ADQ issued its first bond, raising $2.5 billion, which is listed on both the LSE and the Abu Dhabi Securities Exchange (ADX). That bond, which had 5- and 10-year tenors, was oversubscribed by 4.4 times.
As of 30th June 2024, ADQ's total assets amounted to $225 billion, with shareholdings in over 25 portfolio companies across seven economic clusters. These cover key sectors such as utilities, transport, healthcare, agriculture, and real estate, including critical infrastructure assets.
ADQ holds strong credit ratings of Aa2 from Moody’s and AA from Fitch, both with a stable outlook.
This latest issuance aims to broaden ADQ’s funding sources to support the financing of strategic growth projects and extend its long-term credit offerings for investors. The bond issuance was heavily oversubscribed, attracting 4.1 times the demand. It consists of two tranches: a $1 billion 7-year bond maturing in 2031, with an annual interest rate of 4.375%, and a $1 billion 30-year bond due in 2054, offering an annual coupon of 5.250%.
The bonds attracted strong institutional interest from major investors across the US, Europe, the Middle East, and Asia, allowing ADQ to reduce final pricing by 30 basis points from its initial guidance.
Marcos de Quadros, ADQ’s Group Chief Financial Officer, noted that this second bond issuance, part of ADQ's Global Medium Term Note Program, reflects the company's proactive financial management and robust capital structure. He expressed gratitude for the overwhelming market response, as seen in the 4.1 times oversubscription of both tranches.
Earlier in 2024, ADQ issued its first bond, raising $2.5 billion, which is listed on both the LSE and the Abu Dhabi Securities Exchange (ADX). That bond, which had 5- and 10-year tenors, was oversubscribed by 4.4 times.
As of 30th June 2024, ADQ's total assets amounted to $225 billion, with shareholdings in over 25 portfolio companies across seven economic clusters. These cover key sectors such as utilities, transport, healthcare, agriculture, and real estate, including critical infrastructure assets.
ADQ holds strong credit ratings of Aa2 from Moody’s and AA from Fitch, both with a stable outlook.