Abu Dhabi, UAE – Abu Dhabi Developmental Holding Company PJSC (“ADQ”), an Abu Dhabi-based investment and holding company, announced its inaugural USD 2.5 billion bond issuance on the London Stock Exchange (LSE) as part of a significant step in diversifying its funding sources and supporting its strategic growth agenda.

Leveraging favorable market conditions and continued investor appetite for high-quality, investment-grade bonds by emerging market issuers, the combined order book peaked at over USD 11 billion, reflecting an oversubscription of more than 4.4 times.

At pricing, the annual coupon of the five-year USD 1.25 billion tranche was fixed at a rate of 5.498%, while the ten-year USD 1.25 billion tranche achieved a coupon rate of 5.5565% per annum. The issuance accomplished broad institutional distribution, attracting major investors across Asia, the US, the Middle East, UK and Europe.

The proceeds from the offering will serve as growth capital and facilitate further investments in strategic initiatives that contribute to the realization of ADQ’s mandate and expansion in key sectors, driving economic prosperity in Abu Dhabi and beyond. 

His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ, said: “The significant market response to our inaugural bond issuance validates the strength of ADQ's credit profile, which benefits from the stability and resilience of the wider Abu Dhabi economy. Furthermore, it is reflective of investor confidence in Abu Dhabi’s capital markets and in ADQ's compelling growth prospects, which are anchored in the execution of our transformative mandate in sectors providing essential services and products to people in the Emirate and beyond.”

Marcos de Quadros, Chief Financial Officer at ADQ, added: “The success of the issuance under our newly established Global Medium Term Note Programme highlights strong investor appetite, underpinned by robust market fundamentals. Achieving an oversubscription of more than 4.4 times, the issuance demonstrates the commercial attractiveness of our business, which effectively balances non-financial impact with robust financial returns. Going forward, the Programme will enable us to utilize 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 USD 196 billion. ADQ has shareholdings in more than 25 portfolio companies, structured into seven economic clusters which cover key sectors of the transforming 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.

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