ADQ Issues $2.5 Billion Inaugural Bond on London Stock Exchange

ADQ, an Abu Dhabi-based investment and holding company, has announced its inaugural $2.5 billion bond on the London Stock Exchange (LSE).

The bond offering was highly successful, attracting over $11 billion in orders and achieving 4.4 times oversubscription. The strong investor demand reflects confidence in ADQ's financial strength and growth plans.

The bond issuance consists of two tranches: a $1.25 billion five-year portion priced at a 5.498% annual coupon, and a $1.25 billion 10-year tranche with a 5.5565% annual coupon. The proceeds from the offering will be used to support ADQ's strategic growth initiatives and investments in key sectors, contributing to the economic prosperity of Abu Dhabi.

Why this matters: The successful bond issuance validates ADQ's strong credit profile, which benefits from the stability and resilience of the wider Abu Dhabi economy. It also demonstrates investor confidence in Abu Dhabi's capital markets and ADQ's debut $2.5 billion bonds on the London Stock Exchange.

The bond listing marks a significant move for ADQ in diversifying its funding sources and supporting its long-term investment strategy. ADQ's chief financial officer highlighted the commercial attractiveness of the company's business model and the use of debt capital markets to fund long-term investments and support Abu Dhabi's sustainable economic development.

ADQ's strong credit profile, with a Aa2 rating from Moody's and AA from Fitch, and the stability of the Abu Dhabi economy have contributed to the success of the bond issuance. The joint global coordinators and active bookrunners on the deal were Citigroup, Credit Agricole, First Abu Dhabi Bank, Goldman Sachs International, HSBC, and Standard Chartered.

The bond issuance, which achieved broad institutional distribution across Asia, the US, the Middle East, the UK, and Europe, is a testament to ADQ's financial resilience and its mandate to invest in essential services and products. "The strong market response validates ADQ's credit profile and investor confidence in the company's growth prospects, which are anchored in the execution of its transformative mandate in essential services and products," ADQ said in a statement on the pricing of its inaugural $2.5 billion bond listed on the London Stock Exchange.

Key Takeaways

• ADQ, an Abu Dhabi investment firm, issued a $2.5B bond on the London Stock Exchange.
• The bond offering was oversubscribed 4.4 times, reflecting investor confidence in ADQ's growth.
• The bond proceeds will support ADQ's strategic initiatives and Abu Dhabi's economic development.
• ADQ's strong credit profile (Aa2/AA) contributed to the bond's success and broad distribution.
• The bond issuance diversifies ADQ's funding sources and supports its long-term investment strategy.