ADQ mulls inaugural benchmark-sized USD bond issuance: Abu Dhabi sovereign wealth fund ADQ is reportedly selling its first dual-tranche USD-denominated benchmark sized senior unsecured bonds with tenors between five and ten years, Bloomberg and Reuters reported, citing people they say are familiar with the matter. A global investor call reportedly took place on Monday to discuss the debut offering.

Sound smart: A benchmark sized issuance usually has a minimum value of USD 500 mn.

ADQ is looking to diversify its funding sources for future acquisitions, according to one of the sources. In addition to its landmark USD 35 bn agreement with the Egyptian government back in February, ADQ has committed to plenty of investments over the last few months, including agreements in Kenya worth USD 500 mn and initiated a USD 180 mn tech-focused fund in Oman just last week.

The offering comes one week after Abu Dhabi’s first eurobond sale in three years, raising around USD 5 bn in one of the biggest emerging market transactions of the year, according to Bloomberg. Companies under Abu Dhabi’s ownership had around USD 113 bn in outstanding debt by the end of 2023, according to the bond prospectus.

DATA POINT: The wealth fund, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, manages around AED 720.5 bn (USD 196 bn) worth of assets.

ADVISORS- Our friends at HSBC Holdings and First Abu Dhabi Bank, alongside Citigroup, Crédit Agricole, Goldman Sachs International, and Standard Chartered will act as joint global coordinators and active bookrunners, according to Reuters and Bloomberg.

MARKETS THIS MORNING-

Most Asian markets are closed this morning in observance of Labor Day. The Nikkei was down about 0.7% in early trading, while Australia’s ASX 200 was off a bit more than 1%. Markets are also closed today in France, Germany, Italy, and Spain and will look to make up ground tomorrow after the broad Stoxx 600 closed down nearly 1.5% for the month of April. Futures suggest shares in London and New York will face selling pressure at the opening bell later today.

TASI

12,394.9

+0.2% (YTD: +3.6%)

MSCI Tadawul 30

1,561

-0.6% (YTD: +10%)

NomuC

26,336.3

+0.4% (YTD: +7.4%)

USD : SAR (SAMA)

3.75 Buy

3.75 Sell

Interest rates

6.5% repo

5.5% reverse repo

EGX30

24,449

-6% (YTD: -1.8%)

ADX

9,067

+0.05% (YTD: -5.3%)

DFM

4,156

-0.1% (YTD: +2.4%)

S&P 500

5,065

-1% (YTD: +6.6%)

FTSE 100

8,144

0.0% (YTD: +5.3%)

Euro Stoxx 50

4,921

-1.2% (YTD: +8.8%)

Brent crude

87.9

-0.6%

Natural gas (Nymex)

1.97

-2.8%

Gold

2,305.2

-2.2%

BTC

60,374.9

-4.3% (YTD: 117.3%)

THE CLOSING BELL: TADAWUL-

The TASI closed up 0.2% yesterday on turnover of SAR 7.5 bn. The index is up 3.6% YTD.

In the green: MCDC (+7.9%), Nadec (+7.3%) and Saudi Re (+7.2%).

In the red: Saudi Electricity (-3.7%), Chubb (-2.7%) and Raydan (-2.6%).

THE CLOSING BELL: NOMU-

The NomuC closed up 0.4% yesterday on turnover of SAR 54.8 mn. The index is up 7.4% YTD.

In the green: Future Care (+15.7%), AlBabtain Food (+7.9%) and SPC (+5.2%).

In the red: Ghida AlSultan (-14.7%), Taqat (-8.4%) and Academy of Learning (-7.6%)

CORPORATE ACTIONS-

Bank AlBilad’s board of directors recommended a capital hike to SAR 12.5 bn through issuing one bonus share for every four shares, it said in a disclosure to Tadawul.

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