Abu Dhabi investment heavyweight ADQ $2 billion bond meets with heavy oversubscription

QGN
QGN
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The Abu Dhabi investment company ADQ has successfully priced its second bond issuance, a $2 billion bond issue that will be listed on the London Stock Exchange (LSE).

It follows ADQ’s debut debt capital market issuance in May last. The new issuance will diversify ADQ’s funding sources and contribute to ‘strategic growth initiatives within the group’. Th other outcome will be to build out ADQ’s ‘long duration credit curve for investors’.

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The second issue was oversubscribed 4.1 times. The dual-tranche offer includes a $1 billion 7-year bond that’s due 2031 and a $1 billion 30-year bond due in 2054, with annual coupon rates of 4.375% and 5.250%.

“The issuance accomplished broad institutional distribution, attracting major investors across the US, Europe, the Middle East and Asia,” said a statement. “The strong and high-quality demand enabled the transaction to tighten 30bps from initial pricing thoughts to final pricing.”

Its first debt issue was for $2.5 billion bond, which had a primary listing on the LSE and a secondary one on ADX. The dual-tranche bond included 5- and 10-year tenors and met with an oversubscription of more than 4.4 times.

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