UAE $196 Billion Sovereign Wealth Fund Abu Dhabi ADQ Lists 2 Tranches Totalling $2.5 Billion of Bonds on London Stock Exchange, $1.25 Billion 5-Year 5.498% Bond at +80 bps US Treasury & $1.25 Billion 10-Year 5.5565% Bond at +90 bps US Treasury, Order Book at $11 Billion Which is 4.4 Times Oversubscribed
3rd May 2024 | Hong Kong
United Arab Emirates (UAE) sovereign wealth fund Abu Dhabi ADQ with $196 billion AUM (Assets under Management) has listed 2 tranches totalling $2.5 billion of bonds on London Stock Exchange, with a $1.25 billion 5-year 5.498% bond at +80 bps US Treasury and a $1.25 billion 10-year 5.5565% bond at +90 bps US Treasury. The order book at is at $11 billion which is 4.4 times oversubscribed. Announcement (2/5/24): “Abu Dhabi Developmental Holding Company PJSC (“ADQ”), an Abu Dhabi-based investment and holding company, announced its inaugural USD 2.5 billion bond issuance on the London Stock Exchange (LSE) as part of a significant step in diversifying its funding sources and supporting its strategic growth agenda. Leveraging favorable market conditions and continued investor appetite for high-quality, investment-grade bonds by emerging market issuers, the combined order book peaked at over USD 11 billion, reflecting an oversubscription of more than 4.4 times. At pricing, the annual coupon of the five-year USD 1.25 billion tranche was fixed at a rate of 5.498%, while the ten-year USD 1.25 billion tranche achieved a coupon rate of 5.5565% per annum. The issuance accomplished broad institutional distribution, attracting major investors across Asia, the US, the Middle East, UK and Europe. The proceeds from the offering will serve as growth capital and facilitate further investments in strategic initiatives that contribute to the realization of ADQ’s mandate and expansion in key sectors, driving economic prosperity in Abu Dhabi and beyond. As of 31 December 2023, ADQ’s total assets amounted to USD 196 billion. ADQ has shareholdings in more than 25 portfolio companies, structured into seven economic clusters which cover key sectors of the transforming economy. This includes numerous critical infrastructure assets spanning utilities, transportation, healthcare, agriculture and real estate. ADQ is rated Aa2 by Moody’s and AA by Fitch, both with a stable outlook.”
“ UAE $196 Billion Sovereign Wealth Fund Abu Dhabi ADQ Lists 2 Tranches Totalling $2.5 Billion of Bonds on London Stock Exchange, $1.25 Billion 5-Year 5.498% Bond at +80 bps US Treasury & $1.25 Billion 10-Year 5.5565% Bond at +90 bps US Treasury, Order Book at $11 Billion Which is 4.4 Times Oversubscribed “
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ: “The significant market response to our inaugural bond issuance validates the strength of ADQ’s credit profile, which benefits from the stability and resilience of the wider Abu Dhabi economy. Furthermore, it is reflective of investor confidence in Abu Dhabi’s capital markets and in ADQ’s compelling growth prospects, which are anchored in the execution of our transformative mandate in sectors providing essential services and products to people in the Emirate and beyond.”
Marcos de Quadros, Chief Financial Officer at ADQ: “The success of the issuance under our newly established Global Medium Term Note Programme highlights strong investor appetite, underpinned by robust market fundamentals. Achieving an oversubscription of more than 4.4 times, the issuance demonstrates the commercial attractiveness of our business, which effectively balances non-financial impact with robust financial returns. Going forward, the Programme will enable us to utilize debt capital markets as an effective option to fund our long-term investments and continue to support Abu Dhabi’s sustainable economic development.”
ADQ – Established in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and mobility and logistics, amongst others. As a strategic partner of Abu Dhabi’s government, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
Abu Dhabi ADQ, Oman Investment Authority Represented by ITHCA Group Launch $180 Million Focused-Technology Fund to Advance Digital Economy in Oman, Middle East & North Africa Region, Jasoor Fund to Invest in Small & Medium Enterprises and Startups In Sectors Including Fintech, Edtech, Healthtech, Cleantech, Food And Agriculture & Logistics
27th April 2024 – Abu Dhabi ADQ, Oman Investment Authority (OIA), and represented by ITHCA Group are launching a new $180 million focused-technology fund to advance digital economy in Oman, Middle East & North Africa region. The new $180 million focused-technology fund (Jasoor Fund) will invest in Small & Medium Enterprises (SMEs) and startups in sectors including fintech, edtech, healthtech, cleantech, food and agriculture & logistics. Announcement (23/4/24): “ADQ, an Abu Dhabi-based investment and holding company, today announced the launch of a USD 180 million technology-focused fund, Jasoor Fund (the Fund), with Oman Investment Authority (OIA) and represented by ITHCA Group. This commitment is part of broader framework agreement signed between both parties in 2022. The Fund aims to bolster the digital economy in the Sultanate as well as the wider MENA region by supporting high-growth technology companies in sectors such as FinTech, EdTech, HealthTech, cleantech, food and agriculture, and logistics. Its core focus will be on innovative technology companies established in the Sultanate, in addition to technology startups in other countries in the region. It will undertake investments high-growth technology companies at various stages of development that have established business models. In 2022, ADQ and OIA identified investment opportunities worth over USD 8 billion in key sectors of Oman’s economy. The partnership aims to contribute to increased economic cooperation and trade between both nations.”
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Chief Executive Officer of ADQ: : “Building on ADQ’s strategic partnership with OIA established in 2022, the launch of Jasoor Fund reinforces our commitment to make investments that unlock the potential of key sectors of the economy, while creating lasting value for stakeholders. Together, we will continue to advance trade and promote investments that will contribute to the growth of both economies.”
His Excellency Abdulsalam Al Murshidi, President of the Oman Investment Authority: “The establishment of a technology-focused fund with ADQ marks a pivotal moment for Oman’s technology sector. Through this strategic partnership and the significant commitment by ADQ which underpins it, we are setting the stage for a new era of innovation and growth that will propel both nations into a future powered by digital transformation and technological advancement.”
Said Abdullah Al Mandhari, Chief Executive Officer of ITHCA Group: “The establishment of the Jasoor Fund aligns with our venture capital investment strategy, focusing on funding contemporary, emerging and cutting-edge technological projects, while also providing Omani youth with opportunities to develop their ventures and expand globally.
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