Mubadala gives price guidance for dual-tranche dollar bond

DUBAI: Abu Dhabi’s state-owned fund Mubadala has released initial price guidance for its planned dual-tranche US dollar bond in the 125 basis points over mid-swaps area for the seven-year tranche and in the 165 bps over mid-swaps area for the 12-year tranche, bankers on the deal said on Tuesday.

The bond, which is the first debt issuance by the fund after it merged with fellow fund IPIC, is expected to exceed $1 billion (Dh3.67 billion) in size, bankers told Reuters earlier this week.

Price guidance is expected to tighten by 15 to 30 bps in the next few hours ahead of the bond launch, one banker familiar with the matter said.

Mubadala’s latest bond was a $500 million, seven-year issuance last year.

Barclays, HSBC, Natixis, National Bank of Abu Dhabi, SMBC Nikko and Standard Chartered are the joint lead managers and bookrunners for the new deal.

Mubadala is rated AA2 by Moody’s, and AA by both Fitch and Standard & Poor’s.