Abu Dhabi Securities Exchange (ADX) has listed €1 billion bonds issued by Emirates Telecommunications Group Company PJSC (Etisalat Group) in two equal tranches maturing in 2028 and 2033.

The bonds were more than six times over-subscribed.

Etisalat Group’s 500 million euro 7-year notes mature on 17 May 2028 and carry a 0.375% coupon, while the 12-year 500-million-euro tranche matures on 17 May 2033 and carries a 0.875% coupon. The senior unsecured notes were issued under Etisalat’s Euro Medium Term Note Program and are rated AA- by S&P and Aa3 by Moody’s. Interest rates will be paid out to bondholders annually on 17 May.

The listing of Etisalat Group’s bonds come on the heels of Abu Dhabi Ports’ $1 billion listing 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 with a goal 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. During 2021, ADX is expecting a total of more than 10 listings and the launch of a derivates market is scheduled for the fourth quarter.

Saeed Hamad Obaid Al Dhaheri, Chief Executive Officer of ADX, said: “We welcome the listing of Etisalat Group’s 1 billion euro bond on the ADX as we strive to create a dynamic debt capital markets eco-system and expand funding opportunities for businesses in Abu Dhabi and the wider region.

“The issuance was six times oversubscribed with high demand from both local and international investors, reflecting growing investor interest in the UAE’s telecoms sector. Issuers have become increasingly drawn to the ADX because of the investments we have made in products and services over the past year to meet their requirement. This is reflected in the record market capitalisation ADX reached in first quarter.”

Hatem Dowidar, Chief Executive Officer of Etisalat Group, said: “The latest EUR 1 billion 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 capitalization increased 25% during the first quarter to a record AED936 billion ($255 billion). In the first three months of 2021, the total traded value of stocks bought and sold increased five-fold year on year to AED107.8 billion and the benchmark ADX index advanced 17.2%. Meanwhile, buying and selling by institutional investors increased significantly to AED92.6 billion in value, from AED14.6 billion, while trading by retail investors more than doubled to AED15.1 billion. – TradeArabia News Service