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Tue 23 Mar 2010 08:03 PM

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Abu Dhabi bourse to deal listed companies' bonds

Opportunity to give investors options in the market by listing bonds - deputy chief.

Abu Dhabi bourse to deal listed companies' bonds
TRADE BONDS: The Abu Dhabi Securities Exchange plans to trade bonds in listed companies, tapping into demands from the market. (Getty Images)

The Abu Dhabi Securities Exchange (ADX) plans to trade bonds of listed companies, tapping into demand from both issuers and investors, a top official of the bourse said on Tuesday.

Speaking to reporters at a conference, Rashid al Baloushi, deputy chief executive, said: "We are thinking of dual listing on our exchange and we are coordinating with the issuers."

ADX has secured approval from the Securities & Commodities Authority (SCA) for the listings, he said. The official said some local entities have issued bonds and they had to be listed in London and Luxembourg.

He said: "We as a market see an opportunity to list bonds, it gives investors options also."

Several Abu Dhabi entities have recently issued bonds including the National Bank of Abu Dhabi , Abu Dhabi's largest bank by market value.

The infrastructure, the rules and regulations and other mechanisms are ready, he said without giving a timeframe.

Al Baloushi also said ADX is ready to list exchange traded funds (ETFs) but again did not provide a timeframe.

Earlier in the day, a newspaper reported the bourse will list its first exchange traded fund by the end of this week, citing the same official.

Al Baloushi said a new corporate governance law which is expected shortly will attract more foreigners to the exchange. Foreign investments in the Abu Dhabi bourse remained flat in 2009, he said.

Foreigners contributed about 35 percent of the total 140 billion dirhams traded on ADX in 2009, he said, adding that the percentage was about the same in 2008 although the traded value was lower.

He said: "We will see more interest from foreign investors when listed companies will have to adhere to corporate governance rules from April," adding that the SCA's deadline to implement the law is April. (Reuters)

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