ADX lists $1bn bonds issued by Abu Dhabi Ports

Abu Dhabi Securities Exchange (ADX) has said that it has listed $1bn of bonds issued by Abu Dhabi Ports.

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 mature on May 6, 2031 and carry a coupon of 2.5 per cent per annum. Proceeds from the issue will be used for general corporate purposes and debt refinancing.

Read: Abu Dhabi Ports issues $1bn 10-year bond

“Our recent bond issuance attracted strong global interest, achieving the lowest coupon by an Abu Dhabi government owned entity for a 10-year tenor. We have successfully consolidated and integrated our ports, industrial, logistics, maritime and digital entities while increasing volumes and revenues,” said Capt. Mohamed Juma Al Shamisi, group CEO of Abu Dhabi Ports.

The listing of Abu Dhabi Ports bonds follows the listing on ADX in April of Eur1.1bn of bonds issued by Mamoura Diversified Global Holding, a debt issuing entity of Mubadala Investment Company.

In a statement, ADX said that the bond market development is a key part of its ADX One strategy, which aims to increase liquidity and broaden the market’s offering of products and services.

In the last year the ADX has attracted exchange traded funds (ETFs) and listings on the Second Market, and the launch of a derivatives market is scheduled for late 2021.

“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 capitalisation, which has made the 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,” said Saeed Hamad Obaid Al Dhaheri, CEO of ADX.

Trading on ADX has increased significantly this year, as the exchange’s market capitalisation increased 27 per cent during the first quarter to Dhs940bn and the benchmark ADX index advanced 30 per cent.