Dubai: UAE telecoms giant Etisalat listed its 1 billion euro (Dh4.45 billion) bond on the Abu Dhabi Securities Exchange (ADX). The issue has been re-signed more than six times, with demand from local and international investors. “This has given Etisalat Group the opportunity to diversify our capital resources while benefiting from the improved financing costs,” said Etemalat Group CEO Hatem Dowidar. “The listing on the Abu Dhabi Securities Exchange improves the flexibility and transparency for Etisalat Group and investors in the debt capital markets.” The listing comes on the heels of the $ 1 billion Abu Dhabi Ports listing earlier this month and that of a 1.1 billion euro bond issued in April by Mamoura Diversified Global Holding, a wholly owned company by Mubadala Investment Company.
More entries are planned
The increase in the number of listings on the stock exchange is a target of the ‘ADX One’ strategy, which was launched earlier this year with the aim of doubling market capitalization over the next three years. First Abu Dhabi Bank acted as listing agent for Etisalat’s euro bonds. ADX expects a total of more than ten listings this year and the launch of a derivatives market is for the fourth quarter.
“Issuers are becoming increasingly attracted to ADX because of the investments we have made in products and services over the past year to meet their requirements. This is reflected in the record market capitalization that ADX achieved in the first quarter,” said Saeed Hamad. Obaid Al Dhaheri said. , CEO of ADX.
When will the tires expire?
The Etisalat Group’s seven-year notes of 500 million euros expire on May 17, 2028 and carry a 0.375 percent coupon, while the 12-year tranche expires on May 17, 2033 and carries a 0.875 percent coupon. The senior unsecured debentures were issued under the Euro Medium Futures Program Etisalat and are rated by S&P and Aa3 by Moody’s. Interest rates are paid out to the mortgagees annually on May 17th.
Share trading on ADX increased significantly this year, as the stock market’s market capitalization rose by 25 percent in the first quarter to a record Dh936 billion. In the first three months, the total traded value of shares bought and sold increased fivefold on an annual basis to Dh107.8 billion, and the standard ADX index rose by 17.2 percent. Meanwhile, buying and selling by institutional investors increased significantly to Dh92.6 billion in value, from Dh14.6 billion, while trade by retail investors more than doubled to Dh15.1 billion.