Dual-tranche bond issuance with 7- and 30-year tenors achieves oversubscription of 4.1 times and annual coupon rates of 4.375% and 5.250%, respectively

Proceeds will further diversify ADQ’s funding sources to contribute to financing growth initiatives

Abu Dhabi, UAE: Abu Dhabi Developmental Holding Company PJSC (“ADQ”), an Abu Dhabi-based investment and holding company, announced the successful pricing of its second bond issuance. The USD 2 billion bond to be listed on the London Stock Exchange (LSE) follows ADQ’s debt capital markets debut issuance in May 2024. The new issuance will further diversify ADQ’s funding sources to contribute to financing strategic growth initiatives within the group and build out ADQ’s long duration credit curve for investors.

Reflecting confidence in ADQ’s strong credit profile and the financial resilience of Abu Dhabi’s economy, the issuance was significantly oversubscribed by 4.1 times. The dual-tranche offering includes a USD 1 billion 7-year bond due 2031 and a USD 1 billion 30-year bond due 2054, with annual coupon rates of 4.375% and 5.250%, respectively. The issuance accomplished broad institutional distribution, attracting major investors across the US, Europe, the Middle East and Asia. The strong and high-quality demand enabled the transaction to tighten 30bps from initial pricing thoughts to final pricing.

Marcos de Quadros, Group Chief Financial Officer at ADQ, said: “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 completed the issuance of its inaugural USD 2.5 billion bond, which has a primary listing on the LSE and a secondary listing on the Abu Dhabi Securities Exchange (ADX). The dual-tranche bond included 5- and 10-year tenors and achieved an oversubscription of more than 4.4 times.

As of 30 June 2024, ADQ’s total assets amounted to USD 225 billion. ADQ has shareholdings in more than 25 portfolio companies, structured into seven economic clusters which cover key sectors of the Abu Dhabi economy. This includes numerous critical infrastructure assets spanning utilities, transportation, healthcare, agriculture and real estate.

ADQ is rated Aa2 by Moody’s and AA by Fitch, both with a stable outlook.