Abu Dhabi Ports lists $1bn bonds on ADX

The 10-year bond deal was 4.5 times oversubscribed in April

An investor monitors a screen displaying stock information at the Abu Dhabi Securities Exchange June 25, 2014. The spectacular rise and fall of Arabtec, Dubai's most heavily traded stock, teaches hard lessons about how risky the region remains for investors even as its rapid economic growth lures billions of dollars in fresh funds from abroad. Wild trading by local retail investors who dominate activity, plus weak corporate disclosure and a hands-off approach by regulators, can make a toxic mix, and on occasion destabilise entire markets.  REUTERS/Stringer  (UNITED ARAB EMIRATES - Tags: BUSINESS) - GM1EA6P1SB001
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Abu Dhabi Securities Exchange listed $1 billion of bonds issued by Abu Dhabi Ports, as the bourse continue to expand its products offerings and deepen its liquidity pool.

The order book of the 10-year bond deal was 4.5 times oversubscribed, the ADX said in a statement on Thursday. Abu Dhabi port’s debt instrument, which has a primary listing on the London Stock Exchange, is rated A+ (stable) by S&P and A+ (stable) by Fitch.

Bond market development is a key part of the exchange’s “ADX One” strategy, which aims to increase liquidity and broaden the market’s offering of products and services. Last year, the ADX hosted several listings of exchange traded funds on its the Second Market. The bourse plans to launch a derivatives market later this year, it said.

“This year, we have seen a significant increase in liquidity and an acceleration [of] growth in market capitalisation, which has made the ADX the second-largest market in the Mena region,” Saeed Al Dhaheri, chief executive of ADX, said.

The listing of Abu Dhabi Ports’ bonds follows the listing of €1.1bn ($1.34bn) of bonds issued by Mamoura Diversified Global Holding, a debt issuing entity of Mubadala Investment Company, in April.

Trading on ADX, which is owned by state holding company ADQ, has increased notably this year. Its market capitalisation jumped 27 per cent during the first quarter of this year to a record Dh940bn, as the benchmark ADX index advanced 30 per cent.

Earlier this year, ADX also reduced transaction fees on all trading activities as it seeks to double the market capitalisation of companies listed on the exchange within the next three years.

Abu Dhabi Ports, which is also owned by ADQ, said the recent interest in its bond issuance is "strong vote of confidence in our strategy".

“Our recent bond issuance attracted strong global interest, achieving the lowest coupon by an Abu Dhabi government-owned entity for a 10-year tenor,” Mohamed Al Shamisi, group chief executive of Abu Dhabi Ports, said.

In April, the port operator said the bond issuance will help in achieving "an ambitious capital expenditure programme" over the next 10 years.

Abu Dhabi Ports owns and manages 11 ports and terminals in the UAE and Guinea. In 2020, the company reported revenue of $933 million, up 24 per cent over the previous year.