Abu Dhabi’s IPIC raises $2.5bn in two-part bond issuance

Two issuances by state-backed energy firm were a five-year $1bn bond and a ten-year $1.5bn bond
Abu Dhabi’s IPIC raises $2.5bn in two-part bond issuance
IPIC WATCH: Abu Dhabi government-owned International Petroleum Investment Company (IPIC)
By Bloomberg
Tue 16 Nov 2010 03:04 PM

Petroleum Investment Co., an energy investment arm of the Abu Dhabi
government, raised $2.5bn in its debut offering of five and
10-year dollar bonds.

The company’s
sale of $1bn in debt due 2015 and $1.5bn of bonds maturing
in 2020 was 4.4 times oversubscribed, IPIC said in an emailed

The five-year, 3.125 percent issuance was priced at
195 basis points over similar-maturity US Treasuries and the
10-year, five percent-coupon note was priced at a spread of 245 basis
points over Treasuries, according to the statement.

“It has always
been an objective of IPIC to diversify our capital structure and
partner with international capital markets,” Khadem Al Qubaisi, IPIC’s
managing director, said in the statement.

Abu Dhabi, the
largest sheikhdom of the United Arab Emirates and holder of more than
90 percent of the country’s oil reserves, and its companies borrowed
about $14bn last year to fund acquisitions and develop

Investors Service rated the two notes an Aa3 rating on Nov. 11, a notch
lower than its rating for the Abu Dhabi government, to reflect “the
absence of an explicit formal agreement obligating the government to
support under all circumstances.”

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