Aabar Investments raises $1.76bn in bond sale

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Aabar Investments CEO Mohamed Badawy Al-Husseiny.

Aabar Investments CEO Mohamed Badawy Al-Husseiny.

Abu Dhabi's Aabar Investments raised 1.25 billion euros ($1.76 billion) from the sale of bonds exchangeable into the German automaker Daimler's stock, after keen investor interest prompted it to increase the size of the deal.

Earlier on Tuesday, the sovereign fund said it would issue a five-year 750 million euro exchangeable bond. But during the day, the size of the deal was raised to 1.25 billion euros.

Aabar, which owns 9.1 percent of Daimler and said it remained committed to the company and its management, set the exchange price at 62.4 euros - a 30 percent premium to Daimler's average share price between launch and pricing.

The bonds, which will be listed in Frankfurt, will carry a coupon of 4.0 percent and the proceeds from the sale will be used for "general corporate purposes", Aabar said.

At the new deal size, the bonds will represent about 20 million Daimler shares, or 1.9 percent of the total, Aabar said.

"In launching the bonds, Aabar is taking advantage of the current market conditions and the attractive financing the equity-linked market currently offers," it said.

Aabar, which delisted from the Abu Dhabi bourse last year, bought its Daimler stake in March 2009 for around $2.7 billion.

Aabar also said it had made derivative transactions on a number of Daimler shares with a counterparty who would buy the automakers' shares at the same time as the bond launch to hedge its exposure.

The sale was run by Bank of America Merrill Lynch , Deutsche Bank and Morgan Stanley .

Aabar, majority owned by Abu Dhabi government investment vehicle International Petroleum Investment Corp (IPIC), is the largest investor in the recent Glencore IPO, having committed $850 million to the listing.

It also has stakes in Italian lender UniCredit and Virgin Galactic.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Petroleum producers shift attention from Middle East: Kemp

Petroleum producers shift attention from Middle East: Kemp

Following four decades of war, sanctions, nationalisation and...

Saudi Arabia accelerates reform push with market opening

Saudi Arabia accelerates reform push with market opening

Stock market move follows labour market reforms and a new mortgage...

Is $50bn wipeout enough to trigger UAE market changes?

Is $50bn wipeout enough to trigger UAE market changes?

That sum is the value wiped off the Dubai and Abu Dhabi stock...

Most Discussed
  • 7
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 6
    UK politician sacked over burka binbag jibe

    The whole point is that women should dictate what they want to wear and not men. That should be the underlying motive. If a woman WANTS to wear a burqa... more

    Wednesday, 27 August 2014 1:16 PM - mick
  • 6
    UAE teens among the highest for obesity rates

    @MT3, harsh and callous as it may sound nice's analysis is spot on for expats; the impact on us is minimal. Certainly for the locals it is (rather it will... more

    Thursday, 28 August 2014 9:05 AM - Telcoguy