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Abu Dhabi’s state fund Mubadala sells $4 bn in three-tranche bonds

The sale received more than $23.5 bn in orders

Abu Dhabi-based state fund Mubadala sold three-trance bonds worth $4 billion on Tuesday, according to media reports.

Reportedly, the bond sale by Mubadala attracted nearly six times the amount.

According to a document from one of the bank leading the issuance, Mubadala sold $1 billion in six-year bonds at 210 basis points over midswaps, $1 billion in 10-year bonds at 235 bps over midswaps and $2 billion in 30-year dual-listed Formosa bonds at 3.95 percent.

The document also revealed that the sale received more than $23.5 billion in orders.

A Dubai-based fixed income strategist told the media, “Investors continue to demonstrate robust appetite for high-quality GCC names. Mubadala has received more bids at the longer end of the curve at a time when other regional entities are able to attract interest only in the front end of the curve, showcasing investor confidence in long-term risks for Abu Dhabi sovereign-owned entities.”

Reportedly, Mubadala hired Banca IMI, BNP Paribas, BofA Securities, First Abu Dhabi Bank, HSBC, Natixis, and Societe Generale to arrange investor calls on Monday, to be followed by the issuance.

Last month, Mubadala announced that it will launch a healthcare fund to tackle increasing demand due to the coronavirus outbreak. The healthcare fund will be launched by Mubadala’s venture capital arm and will invest in digital health technology and life science. Mubadala is expected to launch the healthcare fund in 2021.

The company revealed that the size of the healthcare fund will be bigger than the funds earlier launched by Mubadala, such as the $437.24 million European fund last year.

Mubadala has also launched funds such as the $400 million US-focused fund and a $250 million Middle East and North Africa (MENA) fund in the last four years.

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