Abu Dhabi ports raises $1bn via bond issuance

By Ashika Rajan, Trainee Reporter
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Abu Dhabi Ports
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Abu Dhabi Ports has raised $1 billion by issuing a 10-year bond that will be listed in London and Abu Dhabi.

According to Abu Dhabi Ports, the bond issued under its newly developed Euro Medium Term Note Program was more than 4.5 times oversubscribed.

Abu Dhabi Ports is a part of ADQ, one of the region’s largest holding companies with stakes in a variety of industries, including media, utilities, aviation and healthcare. In the UAE and Guinea, it owns and operates 11 ports and terminals.

Captain Mohamed Juma Al Shamisi
Mohamed Juma Al Shamisi
CEO – Abu Dhabi Ports

“The global investor response to Abu Dhabi Ports’ first joint Note Program on the London Stock Exchange and Abu Dhabi Security Exchange has been very strong with orders placed by over 200 institutional investors from 35 countries, including sovereign wealth funds, central banks, insurers, corporate treasuries, and asset managers. The Note Program will ensure the realization of Abu Dhabi Ports’ ambitious capital expenditure program across our asset portfolio over the next ten years and enables us to align with the UAE’s wider economic diversification program.”

As the Gulf region recovers from an economic downturn triggered by the COVID-19 pandemic and last year’s oil price plunge, companies have been taking advantage of low rates to boost debt.

On the transaction, Citi, First Abu Dhabi Bank, and UK-based Standard Chartered Bank served as joint global coordinators, while HSBC, Japanese Mizuho, and Societe Generale served as active joint lead managers and joint bookrunners. Passive joint lead managers were BNP Paribas, Credit Agricole, and SMBC Nikko.

In 2020, Abu Dhabi Ports reported revenue of $933 million, up 24 percent from the previous year. It received an A+ rating from both Fitch Ratings and S&P Global Ratings earlier this month.

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