Abu Dhabis ADQ Raises $2bn In Oversubscribed Bond Sale

While the five-year $1 billion tranche will have an annual coupon rate of 4.50 per cent, the 10-year $1 billion tranche will have a 5.00 per cent coupon rate, the sovereign fund said.

The final pricing is 30 basis points lower than the initial pricing plan, the fund indicated.

Strong demand for ADQ bonds

“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,” it said.

The combined order book surpassed $7 billion, marking a more than 3.5 times oversubscription for the issue.

The issuance marked ADQ’s third offering in international debt capital markets and will support the diversification of its funding sources.

Proceeds will provide growth capital and fund projects that advance the fund’s mandate and long-term growth ambitions, the fund said.

The issuance capitalised 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 fund said the issuance accomplished broad institutional distribution from major investors across Asia, the US, the Middle East, the UK and Europe.

The transaction achieved ADQ’s widest distribution to Asian investors to date, it said.

Marcos de Quadros, Group Chief Financial Officer at ADQ, said the fund is 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,” he said.

The $2 billion third offering follows ADQ completing its second bond issue in September 2024.

The dual-tranche offering included seven- and thirty-year tenors and achieved an oversubscription of more than 4.1 times.

As of December 31, 2024, the fund’s total assets amounted to $251 billion, it said.

ADQ, which focuses on investing in critical infrastructure and global supply chains, has shareholdings in more than 25 portfolio companies, structured into eight economic clusters which cover key sectors of the Abu Dhabi economy.

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