- DUBAI: Abu Dhabi investment fund Mubadala plans to launch a dual-tranche benchmark sized bond this week, according to communication sent by arranging banks to investors.
Mubadala is eyeing a five-year and 10-year tranche for a bond which is expected to be issued this week, the document seen by Reuters showed.
Benchmark-sized bonds are typically a minimum of $500 million. Two market sources indicated a potential deal size of between $1.5 billion to $2.5 billion.
Government-owned Mubadala, which has stakes in AMD, General Electric, and private equity firm Carlyle, concludes roadshows on Tuesday which took in Europe, Asia, the US and the UAE.
A bond from Mubadala would be the second Abu Dhabi entity to tap international capital markets this year after International Petroleum Investment Co (IPIC) issued $4.3 billion equivalent in sterling and euro-denominated bonds in March.
An issue from oil exporter Abu Dhabi, largely shielded from political unrest in the region and benefiting from rising oil prices, is likely to attract investors - at the right price.
Trading sources said that at current spreads - which have tightened significantly in recent weeks - a potential bond from Mubadala could price in a similar range to that of IPIC.
“On the current curve, the 5-year should be around 3-ish percent and the 10-year, 5.5 percent. Basically very close to IPIC 16s and 21s,” one source said.
Arranging banks are National Bank of Abu Dhabi, Barclays Capital, HSBC, Standard Chartered and Societe Generale.

