Abu Dhabi to dual list its bonds on ADX

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The Department of Finance (DoF) announced today that it will be registering Abu Dhabi’s bonds- which have already been listed on the London Stock Exchange (LSE) since 2009 – for secondary listing on the Abu Dhabi Securities Exchange (ADX).

DoF informed the LSE that it would be implementing the legal and administrative procedures for the dual listing soon. Investors will be able to trade Abu Dhabi Government Bonds directly through the ADX and the LSE simultaneously.

The Abu Dhabi Government issued these USD3 billion bonds in 2009 in two tranches, each worth USD1.5 billion. The first tranche is due 2014 and the second in 2019.

HE Hamad Al Hurr Al Suwaidi, Chairman of Abu Dhabi Department of Finance, said: “The secondary listing of Abu Dhabi Government’s bonds on both ADX and LSE falls in line with the Abu Dhabi Vision 2030, which aims to build a business environment that is open, efficient, effective and integrated into the global economy. In addition, Abu Dhabi’s Vision 2030 looks to adopt a disciplined fiscal policy that is able to respond to economic cycles, as well as the establishment of an effective and resilient environment for monetary and financial markets. The dual listing will reinforce Abu Dhabi’s position as an international financial centre that attracts investment and provides investors with diverse options in the stock and bond markets.”

He added: “The Department is currently working on obtaining the necessary approvals from the concerned authorities in the coming days for the listing of the bonds in the ADX. The secondary listing reflects ADX’s growing stature for investment.

A recent international report issued emphasises the Emirate’s leading creditworthiness position among Middle Eastern economies, with its (AA) credit rating. These reports also pointed to the decrease in the insurance cost of Abu Dhabi’s sovereign debt against the risk of default or reconstruction, which reflects the Emirate’s strong financial performance and strengthening investor confidence in the durability of its economic and financial conditions.

The Emirate of Abu Dhabi maintained its position as one of the most risk averse economies in the credit market and the most capable country to meet its financial obligations during the second quarter of 2013 – ranking among the top 20 of the world economy’s credit list.

DoF is currently working with various regulators to successfully implement the dual listing soon.

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