By Martin Morris
Abu Dhabi gov’t investment arm looking to issue bonds in Q3 to fund acquisitions.
International Petroleum Investment Co., one of the Abu Dhabi government’s investment arms, plans to issue bonds in the third quarter of this year to fund its acquisitions, said two bankers familiar with the plans.IPIC has hired Goldman Sachs Group Inc. to manage the sale, according to one of the bankers, who declined to be identified because the deal is private. A second lead arranger may also join the bond sale at a later stage, the banker said, according to news agency Bloomberg.
IPIC is expanding its investment target to $30 billion after recently selling its stake in Barclays, its CEO said on June 14.
IPIC has a current investment portfolio of between $16 to $20 billion, Khadem Al Qubaisi said in an interview, with Reuters.
It has closed deals worth $10-$12 billion since the middle of last year and is working on some 30 to 40 investment deals in the energy and other sectors.
Among these include a 3.3 billion euros ($4.6 billion) investment in Spain’s second largest oil producer Cia Espanola de Petroleos SA, and its $499 million takeover of Canada’s largest chemicals maker, Nova Chemicals Corp.
Separately it has confirmed it has received a positive response to its $3.5 billion syndicated loan, with up to eight banks looking to join the deal as bookrunners, according to sources.
The banks are looking to commit $400 million each, the sources said, joining co-ordinating bookrunners Bank of Tokyo-Mitsubishi UFJ, HSBC and Santander.
The loan, which will be used to finance IPIC's recent acquisitions, as well as for general corporate purposes, was launched in May and may complete as early as next week.