ADX welcomes secondary listing of inaugural ADQ’s $2.5b bond

Abu Dhabi Securities Exchange (ADX), one of the fastest-growing exchanges in the world, announced today the secondary listing of the Abu Dhabi Development Holding Company’s (ADQ) $2.5 billion bond, first listed on the London Stock Exchange (LSE) in April 2024.

The dual tranche bond, comprising a five-year $1.25 billion tranche and a ten-year $1.25 billion tranche, underscores ADX’s position as a diversified capital market and a dynamic platform for global investors.

The bond issuance had been met with significant local and international investor demand and was oversubscribed 4.4 times, highlighting investor confidence in ADQ’s robust credit profile and the economic stability and prospects of Abu Dhabi.

Abdulla Salem Alnuaimi, Group CEO of ADX, said, “We are delighted to host the secondary listing of ADQ’s $2.5 billion bond on ADX and play a part in supporting ADQ’s growth strategy and bolstering the development of Abu Dhabi’s economy. As one of the key pillars of the Emirate’s capital market, ADX will continue to provide an agile and dynamic investment platform and market infrastructure to enable companies like ADQ to achieve their objectives and further Abu Dhabi’s economic diversification agenda.”

As an asset owner mandated to contribute to the sustainable development of Abu Dhabi’s economy, ADQ supports its portfolio companies in laying the foundations for future listings to optimize the funding structure and uphold best-in-class corporate governance.

As of July 2024, ADQ’s portfolio encompassed eight companies listed on ADX, namely TAQA, AD Ports Group, Agthia Group, Emirates Steel Arkan, PureHealth, E7 Group, Modon Holding, and Abu Dhabi Aviation.

With this listing, the number of debt instruments listed on ADX reaches 60.

Meanwhile the Abu Dhabi Securities Exchange (ADX) last month announced the listing of bonds issued by the Abu Dhabi government worth $5 billion.

The exchange said in a circular on Wednesday that the listing will be in three tranches, starting on Friday, 21st June.

According to the pricing terms list, the first tranche will be for bonds worth $1.75 billion with a fixed rate of 4.875 per cent maturing in 2029, while the second tranche will be for bonds worth US$1.5 billion with a fixed rate of 5 per cent maturing in 2034, and the third tranche will be for bonds worth $1.75 billion with a fixed rate of 5.5 per cent maturing in 2054.

The Abu Dhabi Securities Exchange saw recently two large direct deals executed on the stock of Emirates Insurance Company (EIC) and The National Investor (TNI) at a combined value of Dhs188 for 57.5 million shares.

According to market data, a trade was executed on 34.9 million shares of The National Investor with a value of Dhs18 million at an execution price of Dhs0.517 per share.

Another trade was executed on 22.6 million shares of the Emirates Insurance Co. with a value of Dhs170.07 million at an execution price of Dhs7.5 per share Large Direct transactions are deals executed outside the order book and do not affect the closing price of the company’s shares or the price index. They also do not affect the highest and lowest prices executed during the session and over the past 52 weeks.

Abu Dhabi Securities Exchange recently welcomed the listing of the Chimera S&P Japan UCITS ETF. This marks the first ETF tracking Japanese equities to be launched on ADX. Managed by Abu Dhabi-based investment management firm Lunate Capital LTD, the ETF replicates the performance of the S&P Japan BMI Liquid 35/20 Capped Index.

The ETF tracks the 30 liquid Japanese companies listed on the Tokyo Stock Exchange, including industry leaders like Honda Motor Co, Toyota Motors Corp, Sony, Softbank Group, Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group, Nippon Steel Corp, Nintendo and more.

The ETF will trade under the ticker symbol JPANI. The Chimera S&P Japan UCITS ETF provides investors direct access to the vibrant Japanese market, further solidifies ADX’s position as the most active and liquid ETF marketplace in the region.

This marks the 13th ETF listing on ADX, giving investors access to nine regional and global markets including the UAE markets. ETF trading values on ADX have exceeded Dhs5.2 billion in 2023, an increase of almost 161 per cent from the previous year, and total ETF trading volumes have reached 1 billion units (representing 205 per cent year-on-year growth).

Commenting on the listing, Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, congratulated Lunate Capital for the successful listing of another ETF on ADX. Alnuaimi highlighted the significance of this listing as the third ETF to launch on the Exchange this year and the 13th overall, emphasising ADX’s growing reputation as the ETF hub in the MENA region.