ADQ prices USD 2 billion dual-tranche bond in third debt capital markets issuance

(MENAFN- FGS Global) Abu Dhabi Developmental Holding Company PJSC (“ADQ”), an active sovereign investor focused on critical infrastructure and global supply chains, has announced the successful pricing of a USD 2 billion bond. The issuance marks ADQ’s third offering in international debt capital markets and supports the diversification of its funding sources. Proceeds will provide growth capital and fund projects that advance ADQ’s mandate and long-term growth ambitions.

The issuance capitalized on sustained demand for high-quality, investment-grade bonds from emerging markets, while demonstrating ADQ’s credit resilience during a period of market volatility and strong investor confidence in Abu Dhabi’s economy. The combined order book surpassed USD 7 billion, resulting in an oversubscription of more than 3.5 times.

At pricing, the annual coupon of the five-year USD 1 billion tranche was fixed at a rate of 4.500%, while the ten-year USD 1 billion tranche achieved a coupon rate of 5.000% per annum. The transaction achieved the lowest five-year yield and the second-lowest ten-year yield among non-Sukuk issuances from the GCC region year to date 2025.

The issuance accomplished broad institutional distribution from major investors across Asia, the US, the Middle East, UK and Europe. The transaction tightened by 30 basis points from initial pricing thoughts to final pricing. The transaction achieved ADQ’s widest distribution to Asian investors to date.

Marcos de Quadros, Group Chief Financial Officer at ADQ, added: “
“We are pleased to have, once again, achieved very broad investor diversification, as well as a strong level of oversubscription across both tranches. The success of this issuance demonstrates global investor confidence in ADQ's credit strength and continued recognition of our value proposition, as well as in the stability and long-term prospects of Abu Dhabi's economy. It also underlines the appeal of bond issuances with attractive fundamentals in this market environment.”

In September 2024, ADQ completed the issuance of its second bond. The dual-tranche offering included seven- and thirty-year tenors and achieved an oversubscription of more than 4.1 times.
As of 31 December 2024, ADQ’s total assets amounted to USD 251 billion, reflecting a three-year compound annual growth rate of 23%. With a focus on investing in critical infrastructure and global supply chains, ADQ has shareholdings in more than 25 portfolio companies, structured into eight economic clusters which cover key sectors of the Abu Dhabi economy.

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

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