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Abu Dhabi Sovereign Wealth Fund Plans Debut Dollar Bond Sale - BLOOMBERG
BY , Bloomberg News
Abu Dhabi Photographer: Christopher Pike/Bloomberg , Bloomberg
(Bloomberg) -- Abu Dhabi’s sovereign wealth fund ADQ is set to follow the emirate’s government into the debt market with its first dollar bond.
ADQ, which is wholly owned by the government of Abu Dhabi, may sell US dollar-denominated, benchmark size senior unsecured bonds with maturities of five and 10 years, said a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. A global investor call on the debut offering was also scheduled for today.
The move comes after Abu Dhabi, the capital of the United Arab Emirates, sold its first eurobonds since 2021 a week ago and raised $5 billion in one of the biggest deals from emerging markets this year. Companies owned by the emirate had approximately $113 billion borrowed and outstanding at the end of 2023, the sheikhdom said in its recent bond prospectus.
Read more: Abu Dhabi Raises $5 Billion With First Eurobond in Three Years
The company, which says it contributed approximately 22% to Abu Dhabi’s non-oil GDP in 2023, holds assets that include Emirates Water and Electricity Company, Emirates Nuclear Energy Corporation or ENEC, Etihad Airways PJSC and Abu Dhabi Airports Co., as well as other agriculture, health-care and logistics enterprises.
ADQ recently said it would explore possible investments in Kenya worth as much as $500 million and launched a $180 million technology-focused fund targeting opportunities in Oman’s digital economy.
Citigroup Inc., Crédit Agricole CIB, First Abu Dhabi Bank PJSC, Goldman Sachs International, HSBC Holdings Plc and Standard Chartered Plc will act as global coordinators and joint active bookrunners.
--With assistance from Archana Narayanan.
