MDGH Secures AED 1 Bln Five-Year Bond at 4.20%

Abu Dhabi’s MDGH GMTN priced a one-billion dirham Reg S five-year bond at par, carrying a coupon of 4.20 per cent. The issuer tightened guidance from an initial 4.45 per cent, and book orders surpassed AED 4.7 billion, not counting joint lead manager interest, signalling strong investor demand.

The unsecured bond is guaranteed by Mamoura Diversified Global Holding, with settlement set for 23 October and a planned listing on the London Stock Exchange Main Market. Fitch is expected to assign an “AA” rating in line with Mamoura’s sovereign backing. The issuance was led by a syndicate including Abu Dhabi Commercial Bank, Bank of China, Citi, Emirates NBD Capital, First Abu Dhabi Bank, Goldman Sachs International, HSBC, Industrial and Commercial Bank of China, National Bank of Kuwait and Standard Chartered.

This city-currency issue follows a $750 million ten-year dollar bond issued less than ten days earlier by MDGH, priced at about 55 basis points over U. S. Treasuries under the same guarantee structure. That transaction underlined the group’s growing presence in global markets.

MDGH is wholly owned by Mubadala Investment Company and plays a central role in Abu Dhabi’s strategy to diversify its economic base. In its 2024 financials, the company reported revenues of AED 39,528 million and a net profit attributable to owners of AED 37,376 million, with total assets reaching AED 596,168 million.

Credit agencies currently align Mamoura’s rating with the sovereign, with Fitch affirming an “AA” rating and stable outlook in late 2023. Moody’s and S&P assign comparable ratings of Aa2 and AA respectively.

Analysts note that the new issue shows how Abu Dhabi-linked issuers are able to tap demand for high-grade Gulf debt amid tighter global credit markets. The bond’s tight pricing and oversubscription point to strong appetite among fixed-income investors for Gulf credits backed by sovereign guarantees.