ADQ makes its USD 2.5 bn bond debut on the LSE

Abu Dhabi sovereign wealth fund ADQ listed its maiden dual tranche bonds on the London Stock Exchange, pricing them at USD 2.5 bn, according to a statement. The bonds include a five-year USD 1.25 bn tranche placed at about 80 basis points (bps) above their counterpart US Treasuries, and a USD 1.25 bn 10-year tranche at 90 bps above, according to Reuters.

The order book was 4.4x oversubscribed with orders surpassing USD 11 bn. The issuance attracted broad institutional interest across Asia, the United States, the Middle East, UK and Europe, according to the statement. The proceeds will be used to expand ADQ’s investments and growth capital in key sectors.

REMEMBER- The issuance comes as ADQ is looking to diversify its funding sources for future acquisitions. It has recently been exploring various regional investments, with a USD 180 mn tech-focused fund in Oman and a landmark USD 35 bn agreement with Egypt’s government back in February. It also inked agreements in Kenya worth USD 500 mn.

Advisors: Our friends at HSBC Holdings and First Abu Dhabi Bank, alongside Citigroup, Crédit Agricole, Goldman Sachs International, and Standard Chartered were joint global coordinators and active bookrunners.