Abu Dhabi Securities Exchange (ADX) has listed 1 billioneuros of bonds issued by Emirates Telecommunications Group Company PJSC (EtisalatGroup) in two equal tranches maturing in 2028 and 2033. The bonds were more than sixtimes 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 a0.875% coupon. The senior unsecured notes were issued under Etisalat’s Euro MediumTerm Note Program and are rated AA- by S&P and Aa3 by Moody’s. Interest rates will bepaid out to bondholders annually on 17 May.
The listing of Etisalat Group’s bonds come on the heels of Abu Dhabi Ports’ $1 billion listingearlier this month and the listing in April of 1.1 billion euros of bonds issued by MamouraDiversified 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 threeyears. First Abu Dhabi Bank has acted as a Listing Agent on Etisalat Group’s Euro bonds onADX. During 2021, ADX is expecting a total of more than 10 listings and the launch of aderivates market is scheduled for the fourth quarter.
Saeed Hamad Obaid Al Dhaheri, Chief Executive Officer of ADX, said: “We welcome thelisting of Etisalat Group’s 1 billion euro bond on the ADX as we strive to create a dynamicdebt capital markets eco-system and expand funding opportunities for businesses in AbuDhabi and the wider region. The issuance was six times oversubscribed with high demandfrom both local and international investors, reflecting growing investor interest in the UAE’stelecoms sector. Issuers have become increasingly drawn to the ADX because of theinvestments we have made in products and services over the past year to meet theirrequirement. This is reflected in the record market capitalisation ADX reached in firstquarter.”
Eng. Hatem Dowidar, Chief Executive Officer of Etisalat Group, said: “The latest EUR 1 billionbond raising exercise has provided Etisalat Group with an opportunity to diversify oursources of capital while taking advantage of the improved cost of funding and listing on theAbu Dhabi Securities Exchange improves flexibility and transparency for Etisalat Group andinvestors in the debt capital markets. We are pleased with the attractive pricing of our bondsand the significant interest from investors across the region and globally. This robust demand demonstrates the financial strength of our business and the confidencebondholders have in the future of the UAE’s telecoms industry.”
Equity trading on the Abu Dhabi Securities Exchange has increased notably this year, as theexchange’s market capitalization increased 25% during the first quarter to a record AED936 billion. In the first three months of 2021, the total traded value of stocks bought andsold increased five-fold year on year to AED 107.8 billion and the benchmark ADX indexadvanced 17.2%. Meanwhile, buying and selling by institutional investors increasedsignificantly to AED 92.6 billion in value, from AED 14.6 billion, while trading by retailinvestors more than doubled to AED 15.1 billion.
