UPDATE 2-Abu Dhabi's Mubadala sells two-tranche bonds worth 1.1 billion euros, document shows

Yousef Saba
Updated ·1 min read

(Updates with size, launch, final spreads)

By Yousef Saba

DUBAI, March 4 (Reuters) - Abu Dhabi state fund Mubadala launched two-tranche bonds worth 1.1 billion euros ($1.32 billion) comprising six- and 13-year paper on Thursday, a document showed.

Mubadala issued 600 million euros in six-year notes at 65 basis points (bps) over mid-swaps and 500 million euros in 13-year bonds at 90 bps over mid-swaps, the document from one of the banks on the deal showed.

Initial guidance was around 85 basis points (bps) over mid-swaps for the six-year tranche and between 105 and 110 bps over mid-swaps for the 13-year paper, a separate bank document showed.

The bonds were issued through Mamoura Diversified Global Holding (MDGH), a wholly-owned subsidiary of Mubadala Investment Company.

MDGH was considering issuing new bonds, a Mubadala spokesman told Reuters, adding that the bond programme that was established in 2009 was "part of our commitment to optimise our capital structure through a flexible approach to funding".

Reuters reported last month that Mubadala was planning an international bond sale.

Abu Dhabi Commercial Bank, BNP Paribas, Citi, First Abu Dhabi Bank, ING, JPMorgan, Morgan Stanley and Standard Chartered arranged the deal, bank documents showed.

($1 = 0.8306 euros) (Reporting by Yousef Saba; Editing by Barbara Lewis and Edmund Blair)