ADQ closes $5bn term loan with Asian banks

• Oversubscribed more than three times
• Demand topped $12bn
• Deal upsized on strong investor interest

Abu Dhabi sovereign wealth fund ADQ has closed a $5 billion syndicated term loan with more than 30 financial institutions across Greater China, a deal it described as a milestone for Middle Eastern borrowers in the Asian loan market.

The five-year facility, ADQ’s debut in the region, was oversubscribed more than three times with demand topping $12 billion, the fund said in a statement.

The transaction, initially launched at $4 billion, was upsized to $5 billion following strong investor interest from lenders in mainland China, Hong Kong, Macau and Taiwan.

ADQ is tapping new international funding sources as it transitions from a domestically focused holding company to a more global investor. 

Founded in 2018 and rebranded from Abu Dhabi Developmental Holding Company in 2020, ADQ manages nearly $300 billion in assets, making it the emirate’s third-largest sovereign fund after Abu Dhabi Investment Authority (Adia) and Mubadala.

Traditionally, ADQ has financed its investments primarily through dividends and cash flow from the more than 25 portfolio companies it holds across critical sectors, including energy, utilities, logistics, food, healthcare and real estate. 

The new loan will further diversify its funding mix, reinforce its liquidity, and support its medium-term investment strategy, the company said.

“The outcome reflects continued confidence in our credit strength, prudent financial management, and disciplined and diversified funding approach that ADQ pursues in all its transactions,” Marcos de Quadros, group chief financial officer, said in a statement.

The transaction was arranged by Bank of China (Dubai branch), DBS Bank, HSBC, Industrial and Commercial Bank of China (Dubai branch), Standard Chartered Bank (Hong Kong), and JP Morgan Securities. 

Commitments were secured from over 30 leading financial institutions in the region.

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ADQ has become increasingly active internationally, recently signing a $25 billion investment framework with US-based Energy Capital Partners for power generation and infrastructure, and partnering with the International Finance Corporation to explore co-investments. 

Executives say the fund’s overseas expansion will be “measured” but is becoming a more mainstream part of its mandate as global demand for infrastructure investment rises.

Last year, ADQ’s portfolio companies accounted for 22 percent of Abu Dhabi’s non-oil GDP. 

Between 2019 and 2024, the group reported an average annual profitability improvement of 25 percent.