Abu Dhabi Ports
A consolidation strategy pays off for Abu Dhabi Ports, and helped draw in heavy subscriber interest for the $1 billion bond. Image Credit: Supplied

Dubai: The 10-year $1 billion bond from Abu Dhabi Ports has listed on Abu Dhabi Securities Exchange. The issue, which has a primary listing on London Stock Exchange, are rated A+ (stable) by S&P and A+ (stable) by Fitch. It was 4.5 times over-subscribed.

“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,” said Saeed Hamad Obaid Al Dhaheri, CEO of ADX.

Debt offerings from local government and government entities has been quite robust since July last, with issuers making full use of the unprecedented low interest rates.

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The Abu Dhabi Ports’ Notes mature May 6, 2031 and carry a coupon of 2.5 per cent per annum. Mohammad Juma Al Shamisi, Group CEO of Abu Dhabi Ports, said: “Our bond 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.

“We have successfully consolidated and integrated our ports, industrial, logistics, maritime and digital entities while increasing volumes and revenues.”

Trading on ADX has increased notably with market capitalization up 27 per cent during the first quarter to a record Dh940 billion and the benchmark ADX index advancing 30 per cent.