Abu Dhabi-based ADQ has announced the successful pricing of its second bond issuance, totaling $2 billion, which will be listed on the London Stock Exchange (LSE). This follows the company’s debt capital market debut earlier in May 2024 and marks a significant step in expanding its funding strategy.
The issuance comprises a dual-tranche offering, with a $1 billion seven-year bond due in 2031 and another $1 billion 30-year bond due in 2054. Both tranches received robust investor demand, with the offering oversubscribed by 4.1 times, signaling strong confidence in ADQ’s financial health and Abu Dhabi’s resilient economy.
Diversifying Funding and Building Long-Term Credit
The new $2 billion bond will help ADQ diversify its funding sources and support strategic growth initiatives within its portfolio. By issuing a dual-tranche bond with varying maturities, ADQ is also extending its long-duration credit curve, offering investors flexibility and long-term investment security.
The bonds were priced competitively, with the seven-year bond carrying a 4.375 percent coupon rate and the 30-year bond offering a 5.250 percent coupon rate. Strong demand from global institutional investors—across the U.S., Europe, the Middle East, and Asia—enabled the transaction to tighten by 30 basis points from initial pricing.
Broad Investor Interest and Global Appeal
ADQ’s ability to attract significant investor interest, with an oversubscription of more than four times, highlights the company’s solid credit profile and Abu Dhabi’s economic stability. The bond issuance attracted investors from across key financial hubs, underscoring its global appeal.
This successful offering follows ADQ’s inaugural $2.5 billion bond issuance earlier this year. That dual-tranche bond included five- and 10-year tenors and was also listed on the LSE, with a secondary listing on the Abu Dhabi Securities Exchange (ADX). Similar to this latest issuance, the inaugural bond achieved an oversubscription of 4.4 times, reinforcing ADQ’s reputation in the global debt markets.
Strengthened by Solid Credit Ratings
ADQ’s financial strength is underpinned by high credit ratings from leading agencies. As of June 2024, Moody’s rated the company at Aa2, while Fitch assigned an AA rating, both with a stable outlook. These ratings reflect ADQ’s robust financial health, backed by a portfolio of assets worth $225 billion, including critical infrastructure assets in sectors such as utilities, transportation, healthcare, agriculture, and real estate.
As the investment arm of Abu Dhabi, ADQ continues to play a pivotal role in supporting the emirate’s long-term economic vision. With this latest bond issuance, the company is well-positioned to further its strategic objectives while providing global investors with secure, long-term investment opportunities.
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