UAE – Mubasher: The Abu Dhabi Securities Exchange (ADX) has listed EUR 1 billion worth of bonds issued by Emirates Telecommunications Group Company (Etisalat) through two equal tranches maturing in 2028 and 2033, respectively.

The bonds were more than six times over-subscribed, according to a press release by ADX on Monday.

Etisalat Group’s EUR 500 million seven-year notes mature on 17 May 2028 and carry a 0.375% coupon, while the 12-year EUR 500-million tranche matures on 17 May 2033 and carries a 0.875% coupon.

The senior unsecured notes were issued under Etisalat’s Euro Medium Term Note Programme and are rated AA- by S&P and Aa3 by Moody’s.

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

“The issuance was six times oversubscribed with high demand from both local and international investors, reflecting growing investor interest in the UAE’s telecoms sector. Issuers have become increasingly drawn to the ADX because of the investments we have made in products and services over the past year to meet their requirement. This is reflected in the record market capitalisation ADX reached in first quarter,” Saeed Hamad Obaid Al Dhaheri, CEO of ADX, said.

Meanwhile, the CEO of Etisalat Group, Hatem Dowidar, said the bonds provide Etisalat with an opportunity to diversify sources of capital while taking advantage of the improved cost of funding and listing on ADX improves flexibility and transparency.