Mubadala sovereign investor based in Abu Dhabi plans to gain USD1.5B from bond sale
Date
5/14/2023 9:17:53 AM
(MENAFN) Mubadala, a sovereign investor based in Abu Dhabi, is planning to raise USD1.5 billion from a bond sale. The bonds will mature in 10.5 and 30 years, according to a report by Reuters. The initial price guidance for the 10.5-year tranche is 140 to 150 basis points over the current 10-year US Treasuries. Meanwhile, the 30-year portion is a Formosa tranche and is about 180 bps over UST. Formosa bonds are debt sold by foreign borrowers in Taiwan and are denominated in currencies other than the Taiwanese dollar.
Abu Dhabi Commercial Bank, BNP Paribas, Citi, First Abu Dhabi Bank, JPMorgan, and Standard Chartered are joint global coordinators for the bond sale. Meanwhile, Barclays, Credit Agricole, Emirates NBD Capital, Mizuho, Natixis, and SMBC Nikko are also involved in the deal.
According to an investor presentation reviewed by Reuters, Mubadala has USD1.8 billion in debt maturing this year, including USD1.4 billion in bonds. Additionally, another USD3 billion in debt, including USD1.8 billion in bonds, is due next year.
The bond sale is expected to raise a significant amount of capital for Mubadala, which can be used to finance its various investments and initiatives. The involvement of several major banks in the deal indicates strong interest from investors, which is a positive sign for Mubadala's financial prospects.
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