Business | Investment
Energy company names banks
Six mandated for global roadshow which starts by month-end
- Zawya Dow Jones
- Published: 00:00 October 13, 2010
Dubai: Abu Dhabi government-owned International Petroleum Investment Co (IPIC), has mandated six banks ahead of a global investor roadshow later this month and a planned benchmark dollar bond issue, two people familiar with the matter said yesterday.
"They want leverage to fund investments," said one banker familiar with the plans.
Goldman Sachs, Bank of America Merrill Lynch, HSBC, National Bank of Abu Dhabi, Royal Bank of Scotland and Standard Chartered Bank are advising on the deal.
IPIC will start the roadshow on October 28 and will travel to Asia, Europe and the US, including Hong Kong, London and New York, the banker, who declined to be named, said.
A benchmark offering is normally at least $500 million in size.
IPIC declined to comment when contacted by Zawya Dow Jones. Standard Chartered Bank, HSBC, Royal Bank of Scotland, Bank of America Merrill Lynch and National Bank of Abu Dhabi declined to comment. Goldman Sachs couldn't be reached immediately for comment.
IPIC's move to tap debt markets is the latest in a string of new deals since the Dubai government's successful $1.25 billion bond issue at the end of last month.
The deal triggered a wave of corporate bond activity in the Middle East as confidence grows in the region and international investors look for higher yields outside the US and Europe, targeting emerging markets such as the United Arab Emirates and Qatar.
Qatar Islamic Bank sold a $750 million sukuk late September and Qatar Tele-com's $1.5 billion dual-tranche bond offering earlier in the month was 10 times oversubscribed.
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