ADQ closes $5bn financing deal with Asian banks, sees 3x demand

Abu Dhabi: Abu Dhabi-based sovereign investor ADQ has closed a $5 billion syndicated financing deal with Asian financial institutions, marking its first borrowing in the Greater China region and drawing demand more than three times the initial target.

A syndicated financing deal is a large loan shared by a group of banks under a single agreement, allowing lenders to spread risk while funding projects too big for a single bank.

The five-year loan attracted commitments of around $12 billion from banks across mainland China, Hong Kong, Macau and Taiwan, prompting ADQ to increase the deal size from $4 billion to $5 billion, ADQ explained in a statement issued Tuesday.

The transaction is the largest term loan secured by a Middle Eastern borrower from Asian financial institutions to date, highlighting growing financial ties between the UAE and Asia.

ADQ said the financing will help diversify its funding sources, strengthen its liquidity position and support its medium-term investment strategy, particularly in critical infrastructure and global supply chains.

More than 30 financial institutions participated in the deal, reflecting strong investor confidence in ADQ’s credit profile and financial position.

The transaction was arranged by Bank of China (Dubai Branch), DBS Bank, HSBC, Industrial and Commercial Bank of China (Dubai Branch), Standard Chartered (Hong Kong) and J.P. Morgan.

Marcos de Quadros, ADQ’s Group Chief Financial Officer, said the strong response demonstrated confidence in the company’s financial discipline and diversified funding approach. He said, "The outcome reflects continued confidence in our credit strength, prudent financial management, and disciplined and diversified funding approach that ADQ pursues in all its transactions.”