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Mon 8 Nov 2010 04:21 PM

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Abu Dhabi's IPIC plans dual-tranche benchmark bond

Energy investment firm mandates six banks for the benchmark issue, valued at least $500m

Abu Dhabi's IPIC plans dual-tranche benchmark bond
IPIC has mandated six banks for the benchmark issue, namely HSBC, Standard Chartered (pictured), Royal Bank of Scotland, Bank of America Merrill Lynch, Goldman Sachs and NBAD. (Bloomberg Images)

Abu Dhabi's International Petroleum Investment Co (IPIC) is planning a dual-tranche bond issue, expected to price this week, with a five- and ten-year maturity, a source with an arranging bank said on Monday.

Early price talk for the five-year tranche is seen in the range of low 200 basis points over five year US treasuries and for the ten-year is seen in the mid-200 basis points over U S treasuries range, the source said.

IPIC - which has stakes in Daimler and Virgin Galactic through its majority-owned Aabar Investments - mandated six banks for the benchmark issue, typically at least $500m, earlier this month. These are HSBC, Standard Chartered, Royal Bank of Scotland, Bank of America Merrill Lynch, Goldman Sachs and National Bank of Abu Dhabi. Roadshows will end in Boston on Tuesday. Another source at an arranging bank said pricing is likely on Wednesday.

IPIC was established in 1984 with a mandate to invest globally in energy and energy related industries. At the end of June 30, its total assets were $48.2bn, the bond prospectus said.