ADX lists 1b euros of bonds issued by Etisalat Group
The listing of Etisalat Group’s bonds come on the heels of Abu Dhabi Ports’
Abu Dhabi Securities Exchange (ADX) has listed 1 billion euros of bonds issued by Emirates Telecommunications Group Company (Etisalat) in two equal tranches maturing in 2028 and 2033. The bonds were more than six times over-subscribed.
Etisalat Group’s 500 million euros 7-year notes mature on May 17, 2028 and carry a 0.375 per cent coupon, while the 12-year 500 million euros tranche matures on 17 May 2033 and carries a 0.875 per cent coupon.
The senior unsecured notes were issued under Etisalat’s Euro Medium Term Note Programme and are rated AA- by S&P and Aa3 by Moody’s. Interest rates will be paid out to bondholders annually on May 17.
The listing of Etisalat Group’s bonds come on the heels of Abu Dhabi Ports’ $1 billion listings earlier this month and the listing in April of 1.1 billion euros of bonds issued by Mamoura Diversified Global Holding, a fully owned entity by Mubadala Investment Company.
Increasing the number of listings on the exchange is a target of ADX’s ‘ADX One’ strategy, launched earlier this year to double market capitalisation over the next three years. First Abu Dhabi Bank has acted as a Listing Agent on Etisalat Group’s Euro bonds on ADX. By 2021, ADX is expecting a total of more than 10 listings and the launch of a derivates market is scheduled for the fourth quarter.
Hatem Dowidar, chief executive officer of Etisalat Group, stated, “The latest 1 billion euros bond raising exercise has provided Etisalat Group with an opportunity to diversify our sources of capital while taking advantage of the improved cost of funding and listing on the Abu Dhabi Securities Exchange improves flexibility and transparency for Etisalat Group and investors in the debt capital markets. We are pleased with the attractive pricing of our bonds and the significant interest from investors across the region and globally. This robust demand demonstrates the financial strength of our business and the confidence bondholders have in the future of the UAE’s telecoms industry.”
Equity trading on the Abu Dhabi Securities Exchange has increased notably this year, as the exchange’s market capitalisation increased 25 per cent during the first quarter to a record Dh936 billion. In the first three months of 2021, the total traded value of stocks bought and sold increased five-fold year on year to Dh107.8 billion and the benchmark ADX index advanced 17.2 per cent.
Meanwhile, buying and selling by institutional investors increased significantly to Dh92.6 billion in value, from Dh14.6 billion, while trading by retail investors more than doubled to Dh15.1 billion. — Wam
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