Abu Dhabi Ports has completed a $1bn bond issue that it said ensures the realisation of its ambitious capital expenditure programme over the next decade.
The 10-year bonds issued under its recently established Euro Medium Term Note Programme (EMTN Programme) will be jointly listed on the London Stock Exchange and Abu Dhabi Securities Exchange.
Notes mature on 6 May 2031 and carry a coupon of 2.5% per annum. The company said the issuance was more than 4.5 times oversubscribed.
Citi, First Abu Dhabi Bank and Standard Chartered Bank acted as joint global coordinators for the transaction, with HSBC, Mizuho and Societe Generale working as active joint lead managers and joint bookrunners.
BNP Paribas, Credit Agricole CIB and SMBC Nikko acted as passive joint lead managers.
Strong response
Abu Dhabi Ports chairman Falah Mohamed Al Ahbabi said: “We are delighted by the strong global investor response to our first issuance under our recently established EMTN Programme, which reflects international confidence in the strength of our business and our strategy.”
Orders were placed by more than 200 institutional investors — including sovereign wealth funds, central banks, insurers, corporate treasuries and asset managers — from 35 countries.
Group chief executive Mohamed Juma Al Shamisi said: “The success of this first issuance under our recently established EMTN Programme is another important step in our prudent financial strategy that underpins our long-term vision for growth.
“We see the success of this $1bn 10-year listing at the lowest coupon achieved by an Abu Dhabi government-related entity for that corresponding 10-year tenor as an expression of confidence in our leadership, our business and in the UAE [United Arab Emirates] economy as a whole."
Abu Dhabi Ports, rated A+ (stable) by both S&P and Fitch, achieved revenues of $933m in 2020, representing year-on-year growth of 24% in what the company described as one of the most challenging periods for the global economy in living memory.
Adjusted Ebitda grew by 37% in 2020 to $422m, which the company said demonstrated its “ongoing potential for growth and development”.
Accelerating growth
Al Shamisi said the proceeds of the issue would accelerate growth in the company's portfolio of ports, industrial zones and logistics supply chains.
Abu Dhabi Ports owns four large commercial ports in the emirate, and manages a container terminal in Fujairah and a bauxite loading terminal in Guinea.
It branched into shipping in 2000 when its maritime services arm — Safeen — teamed up with Singapore-based Bengal Tiger Line to form Middle East-focused feeder container operator Safeen Feeders.
Safeen followed this up in January by teaming up with Dubai's Allianz Marine & Logistics Services to form OFCO — Offshore International, a new offshore marine services company that aims to become a major player in the Middle East offshore sector.
Last December, Ross Thompson, chief strategy and growth officer at Abu Dhabi Ports, told TradeWinds that the port's strategy would always remain focused on the UAE and surrounding region.
