DUBAI, April 11 Abu Dhabi’s state-owned fund
Mubadala has issued a $1.5 billion bond comprising a seven-year
$850 million tranche and a 12-year $650 million tranche, a
document issued by one of the lead banks and seen by Reuters
showed on Tuesday.
The bond is the first debt issuance since the company merged
with fellow Abu Dhabi fund International Petroleum Investment
The seven-year paper, with a 3 percent coupon, had a
re-offer price of 100 basis points (bps) over mid-swaps
generating a 3.1 percent yield. The 12-year notes, which carry a
3.75 percent coupon, were issued with a re-offer price of 140
bps over mid-swaps to yield 3.752 percent, the document showed.
Mubadala had released initial price guidance in the 125 bps
area over mid-swaps for the seven-year notes and in the 165 bps
area over mid-swaps for the 12-year notes earlier on Tuesday.
Guidance went down to the 110 bps area over mid-swaps and
150 bps area over mid-swaps on the seven- and 12-year paper
later during the day, to tighten further to a final price
guidance of 100-105 bps over mid-swaps and 140-145 bps over
mid-swaps for the seven- and 12-year tranches, respectively.
Mubadala’s latest debt sale was a $500 million seven-year
bond issued in 2016.
The company, rated AA2 by Moody's and AA by both Fitch and
Standard & Poor's, said in January that after the merger with
IPIC it would have assets of about $125 billion.
Barclays, HSBC, Natixis, National Bank of Abu Dhabi, SMBC
Nikko and Standard Chartered arranged the new debt transaction.
(Reporting by Davide Barbuscia; Editing by Mark Potter)