Abu Dhabi Ports issues $1bn 10-year bond

Abu Dhabi Ports has issued $1bn 10-year bonds under its recently established Euro Medium Term Note Programme, which will be jointly listed on the London Stock Exchange (LSE) and Abu Dhabi Securities Exchange (ADX).

The issuance was more than 4.5 times oversubscribed at its peak, noted a press statement issued by the Abu Dhabi Media Office.

The settlement of the offering is expected to occur on May 6, 2021, and is subject to customary settlement conditions. The Notes mature on May 6, 2031, and carry a coupon of 2.500 per cent per annum.

Proceeds from this issue by Abu Dhabi Ports, rated A+ (stable) by S&P and A+ (stable) by Fitch, will be used for general corporate purposes and debt refinancing.

Our Group CEO, Mohamed Juma Al Shamisi, comments on the success of the first issuance under Abu Dhabi Ports’ recently established EMTN Programme, which is another important step in our prudent financial strategy that underpins our long-term vision for growth. pic.twitter.com/JuufKzP0Rr

— Abu Dhabi Ports (@AbuDhabiPorts) April 29, 2021

“The success of this first issuance under our recently established EMTN Programme is another important step in our prudent financial strategy that underpins our long-term vision for growth,” said Mohamed Juma Al Shamisi, group CEO of Abu Dhabi Ports.

“Following two days of investor meetings, the global investor response to Abu Dhabi Ports’ first joint Note Programme on the London Stock Exchange and Abu Dhabi Security Exchange has been very strong, with the issuance more than 4.5 times over-subscribed at its peak with orders placed by over 200 institutional investors from 35 countries, including sovereign wealth funds, central banks, insurers, corporate treasuries and asset managers.”

“We see the success of this $1bn 10-year listing at the lowest coupon achieved by an Abu Dhabi government-related entity for that corresponding 10-year tenor as an expression of confidence in our leadership, our business and in the UAE economy as a whole,” added Al Shamisi.

Abu Dhabi Ports reported $933m in revenue for 2020, representing year-on-year growth of 24 per cent. Its adjusted EBITDA grew 37 per cent to reach $422m in 2020.

Citi, First Abu Dhabi Bank and Standard Chartered Bank acted as joint global coordinators for the transaction along with HSBC, Mizuho and Societe Generale as active joint lead managers and joint bookrunners, while BNP Paribas, Credit Agricole CIB and SMBC Nikko acted as passive joint lead managers.