ADQ prices second $2b bond issuance

Abu Dhabi Developmental Holding Company (ADQ) announced the successful pricing of its second bond issuance. The $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 US$1 billion 7-year bond due 2031 and a $1 billion 30-year bond due 2054, with annual coupon rates of 4.375 per cent and 5.250 per cent, 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 programme 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.”