DUBAI: Abu Dhabi's Shuweihat 2 (S2) power and water plant has mandated six banks to help arrange a potential bond issue, lead arrangers said yesterday. A successful transaction would be a rare example of a project bond from the region.
Fixed income meetings ahead of any eventual issue are scheduled to begin on Wednesday in London and end next Monday. Two teams are expected to meet investors in New York, Boston, Los Angeles, Hong Kong, Singapore, the United Arab Emirates and Germany over the course of those days, according to a roadshow schedule seen by Reuters.
The borrower said a bond could be issued at some point in 2013, subject to market conditions.
It would be open to US institutional investors due to its 144a-compliant structure, and issued as a bond by Ruwais Power Co., a document from arranging banks said.
Previous indications have suggested the bond issue could be about $ 800 million.
BNP Paribas, Citigroup Inc., HSBC Holdings, Mitsubishi UFJ Securities, National Bank of Abu Dhabi and Standard Chartered will arrange the fixed income meetings.
S2 is 54 percent owned by Abu Dhabi National Energy Co. (TAQA). Abu Dhabi Water and Electricity Authority holds a 6 percent stake. The remaining shareholding is split between 20 percent held by France's GDF SUEZ, and 10 percent each by Marubeni Corp. and Osaka Gas Co.
Shuweihat 2 picks banks for bond issue
