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ADX lists $100m sovereign bonds issued by Maldives

ABU DHABI, May 4, 2018

The Abu Dhabi Securities Exchange (ADX), the region’s leading financial market, listed today a sovereign bond through a private placement for the Abu Dhabi Fund for Development (ADFD) issued by the Government of Maldives.

The bond, denominated in US dollars, was listed by the Maldives Ministry of Finance and Treasury on the Abu Dhabi Exchange Securities Market and is worth $100 million with a five year maturity (2023) and a coupon rate of 5.5 per cent per annum. The bonds are rated B+ by Fitch Ratings, said a statement from ADFD.

This historic listing is the first foreign sovereign bond to have a primary listing on any stock market in the UAE and the region, reflecting the Exchange’s leading position in the international market in part thanks to its advanced technical and organisational infrastructure, it stated.

Dr Hussain Niyaz, Ambassador of the Republic of Maldives to the UAE rang the opening bell in ADX to mark the start of trading; in the presence of Mohammed Saif Al Suwaidi, the director-general of ADFD and Rashed Al Blooshi, the chief executive of ADX, and representatives from First Abu Dhabi Bank (FAB), as the arranger and lead manager on this transaction.

Dr Niyaz said that the Maldives recognises and appreciates the important role that ADFD has played in the development of Maldives over the past four decades, providing financing in areas of infrastructure development, transport, telecommunication, housing and energy.

In 2017, ADFD provided $50 million to primarily finance the development of a new terminal at Velana International Airport.

Al Suwaidi highlighted the supporting role of ADFD to the Maldivian government and the financial aid it has given it to develop infrastructure projects.

He pointed out that ADFD is providing financial assistance to a number of developing countries in various continents, including the Maldives, with whom they have held a relationship since 1976.

ADFD supported Maldives in financing Dh550 million for the country’s sustainable economic development, he added.

Al Suwaidi said the process of listing sovereign bonds in ADX for ADFD is indicative of the ongoing successful implementation of its investment strategy.

"ADFD pursues a two-pronged investment strategy in this area, including direct investment in selected companies across different countries, and the management of available liquidity in a way that enables revenue to support its financial resources. The Fund invests in 15 strategic companies, four private portfolios with a total value of Dh3 billion," he added.

Al Blooshi said the listing reaffirms ADX’s leading position across the region, given the confidence of governments in ADX, as well as its technical and organisational readiness to list and trade fixed income instruments, and its adoption of an advanced settlement and clearing system.

"ADX seeks to become the preferred listing and trading platform, and works on consolidating its position as a leading market in the region by providing the most innovative products and services to ensure a fair and secure investment environment," he added.-TradeArabia News Service




Tags: Maldives | ADX | sovereign bonds |

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