Subscription levels reflect the confidence of bondholders in the future of the telecommunications sector in the country

“Abu Dhabi Securities” lists bonds of “Etisalat Group” amounting to one billion euros

Issuing bonds provided Etisalat with the opportunity to diversify sources of capital and benefit from the improvement in the cost of financing.

archival

Yesterday, the Abu Dhabi Securities Exchange announced the listing of bonds issued by the Emirates Telecommunications Group Company "Etisalat Group" worth one billion euros, in two equal tranches: the first due in 2028, and the second in 2033, while the levels of subscription to these bonds exceeded six times the offering.

two equal slices

According to a statement issued yesterday, the first tranche comes for a period of seven years, with a value of 500 million euros, and an annual return of 0.375%, and its maturity date is May 17, 2028, while the second tranche comes for a period of 12 years, with a value of 500 million euros, and an annual return of 0.875%, due on May 17, 2033.

The statement indicated that these unsecured bonds were issued under the European Medium-Term Bond Program, and are rated AA- by Standard & Poor's and Aa3 by Moody's.

Interest rates will be paid to bondholders on May 17 annually.

listing bonds

The statement confirmed that the listing of Etisalat bonds on the Abu Dhabi Stock Exchange follows the listing of bonds worth one billion euros issued by Abu Dhabi Ports earlier this month, and the listing of other bonds worth 1.1 billion euros issued by Al-Mamoura Diversified Global Holding, a debt instrument issuer. Mubadala Investment Company.

The statement explained that the increase in the number of listings on the Abu Dhabi Securities Exchange falls within the framework of the objectives of the ADX One strategy announced earlier this year, which aims to double the market value of companies listed on the Abu Dhabi Securities Exchange during the next three years.

The First Abu Dhabi Bank is playing the role of listing agent for Etisalat Group’s euro-denominated bonds, at a time when the market expects to conduct more than 10 listings during 2021, in addition to launching the financial derivatives market scheduled for the last quarter of this year.

debt markets

Saeed Hamad Al Dhaheri, CEO of the Abu Dhabi Securities Exchange, said that the listing of "Etisalat Group" bonds worth one billion euros on the Abu Dhabi Securities Exchange comes at a time when the market seeks to establish a dynamic system for debt markets and enhance financing opportunities for companies in Abu Dhabi and the whole region.

He added, "The levels of subscription to these bonds exceeded six times the offering, as a result of the high demand from local and international investors, which is attributed to their increasing interest in the telecommunications sector in the UAE," stressing that the Abu Dhabi Securities Exchange is witnessing an increasing demand from issuers, after offering a series of New products and services during the past year to meet their requirements, at a time when this resulted in a record rise in its market value during the first quarter of this year.

diversification of sources

For his part, CEO of Etisalat Group, Eng. Hatem Dowidar, said that the recent bond issuance provided the group the opportunity to diversify sources of capital and benefit from the improvement in the cost of financing.

He added that listing these bonds on the Abu Dhabi Securities Exchange contributes to enhancing the levels of flexibility and transparency of the group and investors in the debt capital markets.

He continued, "We are pleased with the pricing levels recorded by our bonds, and the great interest they have received from local and international investors," noting that this strong demand reflects the solid financial foundations on which the group's business is based, and the confidence of bond holders in the future of the telecom sector in the UAE.

Market value of the market

The Abu Dhabi Securities Exchange witnessed a remarkable increase in the volume of shares trading during the current year, as its market value increased in the first quarter by 25%, to reach a record high of 936 billion dirhams.

The first three months of 2021 also witnessed a five-fold increase in the total traded value of shares bought and sold on an annual basis to reach AED 107.8 billion, while the market benchmark increased by 17.2%.

Meanwhile, the volume of buying and selling in favor of institutional investors increased significantly from 14.6 billion dirhams to 92.6 billion dirhams, while the trading volume of individual investors more than doubled to 15.1 billion dirhams.

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