The Department of Finance (DoF) has announced that the Securities and Commodities Authority (SCA) has approved the secondary listing of Abu Dhabi Government’s bonds, which are due to mature in 2014 and 2019, on the Abu Dhabi Securities Exchange (ADX).
The approval is an important step towards completing the legal and administrative procedures required for DoF to gain listing on both the London Stock Exchange (LSE) and ADX, which will enable investors to trade Abu Dhabi Government bonds directly through the ADX and the LSE simultaneously.
HE Hamad Al Hurr Al Suwaidi, Chairman of Abu Dhabi Department of Finance, said: “The listing of Abu Dhabi Government bonds on both ADX and LSE will help to create a more attractive investment climate in the Emirate. It also confirms Abu Dhabi’s position as an international and regional financial centre that provides investors with various options in the stock and bond markets.”
The bonds, worth $3 billion, have been listed on the LSE since 2009 and were issued in two tranches, each worth $1.5 billion. The first tranche is set to mature in 2014, and the second in 2019.
The Emirate of Abu Dhabi has successfully established confidence among investors and its economy, which has been granted the (AA) credit worthiness classification, is ranked as the most creditworthy within the Middle Eastern region. In addition, Abu Dhabi sustained its classification as one of the most risk-free economies in the credit market and the most able country to meet its financial obligations during the second quarter of 2013, ranking among the top 20 of the world economy’s credit list.