June 24, 2020 / 4:48 PM / 14 days ago

UPDATE 1-APICORP sells $750 million in 5-yr bonds - document

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By Yousef Saba

DUBAI, June 24 (Reuters) - The Arab Petroleum Investments Corporation (APICORP) sold $750 million in five-year bonds on Wednesday and received more than $900 million in orders for the debt sale, a document showed.

APICORP sold the bonds at 110 basis points over midswaps, tightening from initial guidance of around 130 bps over midswaps when it began marketing the sale on Tuesday.

In April, APICORP hired Citi, Goldman Sachs and Standard Chartered to arrange investor calls for a potential bond sale.

Two sources familiar with the matter have said that investors wanted a spread of more than 200 bps and APICORP wanted a spread of 100 bps on the deal, prompting the company to wait for a better window to issue.

The debt markets have improved significantly since, allowing for the tight spread.

Citi, Goldman Sachs and Standard Chartered acted as global coordinators on the deal and were joined by Emirates NBD Capital as joint lead managers and joint bookrunners.

Fitch assigned APICORP an AA credit rating with a stable outlook on Tuesday, “driven by APICORP’s ‘excellent’ capitalisation and ‘low’ risk profile,” the ratings agency said.

“APICORP has been profitable in almost every year since its inception owing to very limited credit losses and positive revaluation on its equity portfolio,” Fitch said.

Moody’s reaffirmed APICORP’s rating at Aa2 with a stable outlook in April. (Reporting by Yousef Saba, editing by Louise Heavens and Jane Merriman)

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