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ADFG ‘planning $100m private bond sale’

Issuance with a three-year tenor would come at a relatively calm time in the Gulf region’s debt capital markets

Gulf News

Dubai: The Abu Dhabi Financial Group (ADFG), a privately owned investment company with over $5 billion (Dh18.36 billion) of assets under management, is considering issuing $100 million in debt through a privately placed bond, sources familiar with the matter said.

The private placement, with a three-year tenor according to the sources, would come at a relatively calm time in the Gulf’s debt capital markets, which have seen little to no issuance over the summer months.

The lull was interrupted last week by a $3 billion debt sale by Bahrain, which is to be followed this week by a dollar bond sale by Saudi Arabia’s Islamic Development Bank.

But corporate issuances have been rarer, with the latest being a $375 million bond by the UAE’s Topaz Marine last July. ADFG declined to comment.

The company, which has invested in real estate in London and Eastern Europe, operates in a range of financial areas including investment banking, asset management, private equity, and it also lends directly to the small and medium-sized enterprises sector.

It typically invests between $50 million and $500 million, according to its website.