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Abu Dhabi's Mubadala hires banks for dual-tranche euro bonds - document

March 3, 2021
banking

Citi and JPMorgan were hired as global coordinators, with Abu Dhabi Commercial Bank, BNP Paribas, First Abu Dhabi Bank, ING, Morgan Stanley and Standard Chartered as joint bookrunners

DUBAI - Abu Dhabi state fund Mubadala has hired banks to arrange a planned dual-tranche issue of euro-denominated bonds, a document seen by Reuters showed.

Citi and JPMorgan were hired as global coordinators, with Abu Dhabi Commercial Bank, BNP Paribas, First Abu Dhabi Bank, ING, Morgan Stanley and Standard Chartered as joint bookrunners, the document from one of the banks showed.

They will hold investor calls starting on Tuesday, to be followed by an issue of six-year and 12-year euro-denominated bonds, subject to market conditions.

Reuters reported last month that Mubadala was planning an international bond sale.

Mubadala Investment Company (MIC) issues its debt through a subsidiary, Mamoura Diversified Global Holding (MDGH), which had 388.7 billion dirhams ($106 billion) in total assets and 179.38 billion dirhams in total liabilities as of end-June 2020, a preliminary prospectus for the bonds showed.

MDGH lost 9.4 billion dirhams in the six months ended June 30, 2020 versus a profit of 9.67 billion in the same period a year earlier, the prospectus showed.

The value of net assets transferred to MDGH from the government since a January 2017 decree, which created MIC and transferred MDGH and International Petroleum Investment Company's shareholdings under MIC, was 6.9 billion dirhams as of end-June 2020 from 17.5 billion dirhams as of end-2017.

The reduction in value of the assets recorded in 2019 reflected both cash settlement and liabilities assumed by the group, which comprises MDGH, its subsidiaries, jointly-controlled assets and equity accounted investees. The liabilities were assumed by the group from an entity under common control of MIC.

In August 2020, MIC's board approved the transfer of 16 million square feet of land held by Masdar, a developer and operator of utility-scale renewable energy projects, to the Abu Dhabi government against a reduction of 2.8 billion dirhams in additional shareholder contributions. ($1 = 3.6728 UAE dirham)

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