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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The money received is expected to aid Oman’s economy.

The funding was coordinated by Citigroup Global Markets and First Abu Dhabi Bank along with JP Morgan securities, MUFG securities EMEA as well as Natixis, Societe Generale, and Standard Chartered Bank.

Oman offered five-year bonds that are due in February 2025, at a final yield of 4.95 percent. The 10-year bonds, on the other hand, were priced at a yield of 6 percent. Both five year and 10-year Oman bonds received orders worth $14 billion from the investors.

The yield was below the initial price guidance of 5.375 percent and 6.375 percent for the five-year bonds and ten-year bonds respectively.

According to data from various sources, Oman issued $750 million in five and half year bonds and $2.25 billion in ten-year bonds.

The reports vary slightly from the previous estimations. The earlier estimated size of the bond was $2 billion, which was supposed to cover up Oman’s budget deficit that was expected to be $7.3 billion in 2019.

The fall in oil prices had hit Oman like most other countries whose main source of income was oil production. The decreased revenue led to a widening of the nation’s fiscal deficit.

In early 2019, the three major rating agencies S&P Global, March Moody and Fitch Ratings downgraded Oman’s economic capacity and potential. The bond was an experiment to see if Oman could tap any foreign debt markets.

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