Abu Dhabis ADQ Raises $2bn In Oversubscribed Bond Sale

Abu Dhabi Developmental Holding Company PJSC (ADQ) announced 4.5-5 per cent coupon rates for its $2 billion bond issue.

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.

RECENT NEWS

UAE Announces Tax Exemption; Expected Holiday Dates; Dubai Real Estate Cryptocurrency Buying Tips; Visa Application Centre Opened – 10 Things You Missed This Week

UAE tax rules, holiday forecasts, Dubai real estate analysis and more top news stories this week Read more

“This Is The True Crypto Hub”: Frederica Tompkins Michell On Decentralisation, Brand Building, And Why Dubai Is Leading The Future

From blockchain to branding, Binance’s Global Marketing Chief unpacks the real drivers behind Dubai’s crypto ascent Read more

“We Dont Want To Take An American Approach”: BOLTs Justin Grooms On Building For The UAE

How the fintech leader is localising trust, data and identity for the UAE’s fast-moving digital economy Read more

UAEs Islamic T-Sukuk Auction Attracts AED 6.93bn In Bids

The UAE Ministry of Finance has successfully issued AED 1.1 billion in Islamic T-Sukuk for May 2025 Read more

JP Morgan-backed ISG Partners With Bank Of Baroda To Launch UAEs Jaywan Cards

The introduction of Jaywan Cards will help Bank of Baroda’s UAE unit significantly enhance merchant acceptance by off... Read more

From First Click To Full Service: The AI Journey In Financial Services

Real-time analytics, automation, and generative AI are redefining how institutions attract, onboard and serve today’s... Read more