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Abu Dhabi's Mubadala prints $1.5 billion bonds - lead
April 11, 2017 / 5:02 PM / 7 months ago

Abu Dhabi's Mubadala prints $1.5 billion bonds - lead

DUBAI, April 11 (Reuters) - 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 Company (IPIC).

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)

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