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 authorised to speak about it. A global investor call on the debut offering was also scheduled for Monday (Apr 29).
The move comes after Abu Dhabi, the capital of the United Arab Emirates, sold its first eurobonds since 2021 a week ago and raised US$5 billion in one of the biggest deals from emerging markets this year. Companies owned by the emirate had approximately US$113 billion borrowed and outstanding at the end of 2023, the sheikhdom said in its recent bond prospectus.
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, as well as other agriculture, health-care and logistics enterprises.
ADQ recently said it would explore possible investments in Kenya worth as much as US$500 million and launched a US$180 million technology-focused fund targeting opportunities in Oman’s digital economy. BLOOMBERG
