ADX lists US$1 billion bonds issued by Abu Dhabi Ports

2 min read
  • The 10-year bonds, with a primary listing on the London Stock Exchange, rated A+ (stable) by both S&P and Fitch 

  • Bond issuance attracted strong global interest, says CEO Abu Dhabi Ports

Abu Dhabi Securities Exchange (ADX) on Thursday announced that it has listed US$1 billion 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 Global Ratings and A+ (stable) by Fitch Ratings and were 4.5 times over-subscribed. 

The Notes mature on 6 May 2031 and carry a coupon of 2.5 percent per annum.

Bond market development is a key part of the Abu Dhabi exchange’s “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.

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.

Saeed Hamad Obaid Al Dhaheri, Chief Executive Officer of ADX, said, “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.”

He said this year saw 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,” he said.

Mohamed Juma Al Shamisi, Group CEO, Abu Dhabi Ports, said, “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 in the UAE economy and leadership.”

He said Abu Dhabi Ports has successfully consolidated and integrated ports, industrial, logistics, maritime and digital entities while increasing volumes and revenues. 

Trading on the ADX has increased notably this year, as the exchange’s market capitalization increased 27 percent during the first quarter to a record AED940 billion ($255b) and the benchmark ADX index advanced 30 percent.