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Abu Dhabi sovereign wealth fund ADQ has listed a dual tranche $2.5 billion inaugural bond on the London Stock Exchange, according to a statement, which it said was a “significant step in diversifying its funding sources and supporting its strategic growth agenda.”
The fund sold a $1.25 billion five-year portion at 80 basis points (bps) over US Treasuries (UST) and another $1.25 billion 10-year tranche at 90 bps over the same benchmark, according to fixed income news service IFR.
The issuance has attracted investors across Asia, the US, the Middle East, UK, and Europe, it added.
The proceeds from the offering will serve as growth capital and facilitate further investments in strategic initiatives and expansion in key sectors, a statement added.
The combined order book peaked over $11 billion, reflecting an oversubscription of more than 4.4 times, a statement added.
Marcos de Quadros, Chief Financial Officer at ADQ, added: “Going forward, the programme will enable us to utilise debt capital markets as an effective option to fund our long-term investments and continue to support Abu Dhabi’s sustainable economic development.”
As of 31 December 2023, ADQ’s total assets amounted to $196 billion. ADQ is rated Aa2 by Moody’s and AA by Fitch, both with a stable outlook.
(Writing by Bindu Rai, editing by Seban Scaria)
