Font Size

- Aa +

Thu 3 Mar 2011 06:00 PM

Font Size

- Aa +

Abu Dhabi's Mubadala sees benchmark bond in 2011

State owned fund under no pressure from strained economic circumstances

Abu Dhabi's Mubadala sees benchmark bond in 2011
BENCHMARK BOND: Mubadala, the Abu Dhabi owned fund, could issue a benchmark bond in 2011 (ITP Images)

State owned fund Mubadala sees a "definite possibility" of issuing a benchmark bond this year, an executive said on Thursday, adding that its recent high profile bailout of two firms has not weighed on the company.

The investment company would use any bond proceeds for general corporate purposes, said Derek Rozycki, executive director of structured finance and capital markets at Mubadala.

Mubadala has stepped in to support Abu Dhabi firms forced, in the aftermath of the global financial crisis, to restructure large debt piles.

Rozycki declined to comment on whether the state owned fund sees a need for more restructuring in Abu Dhabi but said the company is not under pressure.

"Businesses not doing well is normal, there are different types of the economic cycle," Rozycki said.

"There is no pressure on us, it hasn't weighed on us."

Mubadala provided troubled district cooling firm Tabreed with an extra AED3.1bn ($844.2m) lifeline to help tackle its massive debt pile. The funds were in addition to a $354m bailout last March to help Tabreed through its recapitalization process.

In January, Mubadala also provided struggling developer Aldar Properties with $5.2bn in support, which included buying some of its key assets and subscribing to a bond sale.

Mubadala has stakes in Advanced Micro Devices Inc and Ferrari, as well as General Electric and private equity firm Carlyle. The investment firm is fully owned by the Abu Dhabi government.