TAQA, GIB to price bonds in late-year Gulf flurry

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Abu Dhabi National Energy Company (TAQA) is preparing to price a two-tranche dollar-denominated bond issue, maturing 2018 and 2023, after roadshows conclude on Tuesday, arranging banks said.

TAQA, which is 75 percent owned by the Abu Dhabi government, joins Gulf International Bank in pricing new issues as regional borrowers line up to get deals away before investors close books for the year.

TAQA, which is buying a number of BP's North Sea assets, said last week it had hired banks to arrange investor meetings ahead of a benchmark-sized issue, typically at least US$500m.

TAQA is a frequent bond issuer and familiar to international investors, in part due to its global profile. At the end of the third quarter, it had a cash position of AED3.5bn (US$950m) as well as AED14.8bn (US$4bn) worth of unused credit facilities.

The company has US$1.75bn in bond maturities next year. It last tapped markets for a dollar-denominated issue last December with a US$1.5bn two-tranche bond to refinance debt.

TAQA announced last week that it bought a 53.2 percent operating interest in an oil block in Iraqi Kurdistan from General Exploration Partners and earlier this year bought a 50 percent stake in Kurdish power plant Chamchamal.

BNP Paribas, Citigroup, HSBC Holdings , National Bank of Abu Dhabi and Standard Chartered are mandated to arrange the deal.

Bahrain-based Gulf International Bank is a less familiar name in the global fixed income community, although it too benefits from strong state-ownership.

GIB released early price talk for a five-year bond on Tuesday at a spread of 165 to 175 basis points over midswaps. The issue size is yet to be determined, and it will be GIB's first dollar deal in seven years, according to IFR Markets.

GIB is 97.2 percent owned by the Saudi government, a level of risk international investors are likely to be more comfortable with.

"GIB will see more Saudi interest, but interest for TAQA will be global," a regional fixed income trader said, declining to be identified.

Earlier this year, GIB conducted investor meetings in Malaysia for a possible Islamic bond, or sukuk, under a MYR3.5bn programme but no issue has yet materialised.

Other shareholders are Gulf sovereign wealth funds including Kuwait Investment Authority and Qatar Holding.

GIB picked itself, JP Morgan Chase Inc, National Bank of Abu Dhabi, Barclays Plc, Standard Chartered Plc and Societe Generale to arrange the deal.

The Kingdom of Morocco also concludes roadshows this week for a debut dollar issue.

Last week, International Petroleum Investment Co (IPIC) priced a US$2.9bn equivalent dual-currency bond. Gulf Investment Corp also priced a US$500m five-year bond in late November, its first dollar deal since 2005.

Related:

Market Performance

Abu Dhabi National Energy Company
1.25
-0.01 -0.79 (%)
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
The flood gates open

The flood gates open

Turkey’s new fondness for sukuk has been met with increasing...

"Sleeping giant" debt market awakes in Saudi Arabia

After years in which the growth of Saudi Arabia's bond market...

Gulf bond issuers see opportunity in Malaysia

Gulf bond issuers see opportunity in Malaysia

Gulf looks to tap Malaysian investors with ringgit issues; country...

Most Discussed
  • 15
    Germany puzzled as UAE think tank ordered to close

    Matt, your words sound kind of funny given the role the Britain has played in this region for so many decades.
    And given the democratic tradition that... more

    Thursday, 17 April 2014 7:10 PM - one of the joes
  • 10
    UAE father who whipped son to death wins appeal

    "Under Sharia, a parent cannot be executed for killing their child"
    A spouse could be executed if he/she kills his/her spouse, as none of them is... more

    Friday, 18 April 2014 3:38 PM - Nihar
  • 3
    To diet or not to diet?

    It is best to eat by your blood type. Following this diet is miraculous. Generic diets don't always work as certain foods are not good for the individual... more

    Friday, 18 April 2014 11:49 AM - Shamira Mitha
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams