Abu Dhabi-based regional stock exchange, Abu Dhabi Securities Exchange (ADX) has listed $1 billion of bonds issued by Abu Dhabi Ports, a company that owns, manages, and operates 11 ports and terminals in the UAE and Guinea.
According to the company statement, “The 10-year bonds, with a primary listing on the London Stock Exchange, are rated A+ (stable) by S&P and A+ (stable) by Fitch, and were 4.5 times oversubscribed.”
The Notes have a 2.5 percent annual coupon and will mature on May 6, 2031. The listing of Abu Dhabi Ports bonds follows the listing on ADX in April of 1.1 billion euros of bonds issued by Mamoura Diversified Global Holding, a debt issuing entity of Mubadala Investment Company.
“We welcome the listing of Abu Dhabi Ports’ bonds on the ADX as the exchange continues to deepen the marketplace, providing investors with high-quality access to regional investment opportunities. This year, we have seen a significant increase in liquidity and an acceleration in the growth in market capitalization, which has made ADX the second-largest market in the MENA region. As we invest further in technology and broaden our products and services, ADX is well-positioned to build a strong pipeline of listings.”
“Our recent bond issuance attracted strong global interest, achieving the lowest coupon by an Abu Dhabi government-owned entity for a 10-year tenor. This is a strong vote of confidence in our strategy and the UAE economy and leadership. We have successfully consolidated and integrated our ports, industrial, logistics, maritime and digital entities while increasing volumes and revenues,” commented Capt. Mohamed Juma Al Shamisi, Group CEO of Abu Dhabi Ports.
Bond market development is a key part of the Abu Dhabi exchange’s “ADX One” strategy, which intends to boost liquidity and diversify the market’s supply of products and services. The ADX has attracted exchange-traded funds (ETFs) and Second Market listings in the last year, and a derivatives market is expected to start in late 2021.