الرئيسية
* TAQA sells $750 mln 5-year bonds, $750 mln 10-year
* New TAQA issues used to refinance existing debt
* Order books over $8 billion -market source
* Existing bonds sell off after guidance released
(Adds pricing details, fund manager comment)
By Rachna Uppal and Stanley Carvalho
ABU DHABI - State-run Abu Dhabi National Energy
Co (TAQA) on Monday sold $1.5
billion in bonds maturing in five and 10 years to refinance
upcoming debt.
The company issued $750 million in five-year bonds paying a
premium of 330 basis points over comparable U.S. Treasuries, and
an equal amount of 10-year paper at a spread of 390 basis points
over Treasuries, Thomson Reuters' IFR reported.
In a sign of strong investor demand, the pricing came at the
tighter range of a downwardly revised guidance of 335 basis
points and 400 basis points for the bonds maturing in five and
10 years, respectively.
The five-year tranche had a reoffer price of 99.5020
and a coupon of 4.125 percent. The 10-year tranche had a reoffer
price of 99.5150 and a coupon of 5.875 percent.
TAQA, which is 75 percent owned by the government
of Abu Dhabi, last month said it would buy back a $1.5 billion
bond maturing October 2012 and enlisted four banks to sell new
debt.
"To me it is sensible what issuers are doing.
They are taking advantage of a window that is there, created by
some optimism regarding the European debt situation," said Luz
Padilla, emerging markets fixed income fund portfolio manager at
Los Angeles-based DoubleLine. "They offered a decent spread
concession and that is enticing people before year end."
The leaders of France and Germany on Monday agreed a
master plan to impose budget discipline across the euro zone,
ahead of a meeting of European Union leaders in Brussels
on Thursday and Friday.
Given that the latest chapter in the crisis is not
written yet, debt issuers are taking advantage of whatever
remaining liquidity there is in the market before year end.
TAQA is a regular issuer of debt in global markets
and benefits from implicit backing from the Abu Dhabi government
as one of its strategic firms. Abu Dhabi holds over 90 percent
of the UAE's oil reserves.
"As a government-controlled investment entity, and as a
provider of the bulk of power and water to the Emirate, it is
pivotal to the viability of the UAE. It also has extensive
international investments," said John Bates, head of fixed
income at asset manager Silk Invest.
TAQA's existing bonds fell after the guidance was released
as investors made room for the new issue.
TAQA's $500 million 6.165 percent 2017 maturity
yield 4.51 percent on
Monday, up from 4.42 percent on Friday, according to
Reuters data. The yield on its $1 billion 2016 maturity
carrying a coupon of 5.875 percent
rose to 3.974 percent on Monday from 3.682 percent on Friday.
Bank of America, RBS,
Standard Chartered and Mitsubishi UFJ
are arranging the deal.
Last week, Qatar printed a $5 billion bond in a
three-tranche deal making it the biggest issue from the region
this year.
Like Qatar, TAQA is also listing the offering as a Reg
S/144a deal which makes it open to institutional U.S. investors.
"Abu Dhabi and Qatari credits are much sought-after, even
when the global pictures looks volatile," Silk Invest's Bates
said.
(Reporting by Rachna Uppal and Stanley Carvalho; additional
reporting by Christopher Reich and Daniel Bases in New York;
Editing by Mark Potter, James Dalgleish, Dan Grebler, Leslie
Adler)
* New TAQA issues used to refinance existing debt
* Order books over $8 billion -market source
* Existing bonds sell off after guidance released
(Adds pricing details, fund manager comment)
By Rachna Uppal and Stanley Carvalho
ABU DHABI - State-run Abu Dhabi National Energy
Co (TAQA) on Monday sold $1.5
billion in bonds maturing in five and 10 years to refinance
upcoming debt.
The company issued $750 million in five-year bonds paying a
premium of 330 basis points over comparable U.S. Treasuries, and
an equal amount of 10-year paper at a spread of 390 basis points
over Treasuries, Thomson Reuters' IFR reported.
In a sign of strong investor demand, the pricing came at the
tighter range of a downwardly revised guidance of 335 basis
points and 400 basis points for the bonds maturing in five and
10 years, respectively.
The five-year tranche had a reoffer price of 99.5020
and a coupon of 4.125 percent. The 10-year tranche had a reoffer
price of 99.5150 and a coupon of 5.875 percent.
TAQA, which is 75 percent owned by the government
of Abu Dhabi, last month said it would buy back a $1.5 billion
bond maturing October 2012 and enlisted four banks to sell new
debt.
"To me it is sensible what issuers are doing.
They are taking advantage of a window that is there, created by
some optimism regarding the European debt situation," said Luz
Padilla, emerging markets fixed income fund portfolio manager at
Los Angeles-based DoubleLine. "They offered a decent spread
concession and that is enticing people before year end."
The leaders of France and Germany on Monday agreed a
master plan to impose budget discipline across the euro zone,
ahead of a meeting of European Union leaders in Brussels
on Thursday and Friday.
Given that the latest chapter in the crisis is not
written yet, debt issuers are taking advantage of whatever
remaining liquidity there is in the market before year end.
TAQA is a regular issuer of debt in global markets
and benefits from implicit backing from the Abu Dhabi government
as one of its strategic firms. Abu Dhabi holds over 90 percent
of the UAE's oil reserves.
"As a government-controlled investment entity, and as a
provider of the bulk of power and water to the Emirate, it is
pivotal to the viability of the UAE. It also has extensive
international investments," said John Bates, head of fixed
income at asset manager Silk Invest.
TAQA's existing bonds fell after the guidance was released
as investors made room for the new issue.
TAQA's $500 million 6.165 percent 2017 maturity
yield 4.51 percent on
Monday, up from 4.42 percent on Friday, according to
Reuters data. The yield on its $1 billion 2016 maturity
carrying a coupon of 5.875 percent
rose to 3.974 percent on Monday from 3.682 percent on Friday.
Bank of America, RBS,
Standard Chartered and Mitsubishi UFJ
are arranging the deal.
Last week, Qatar printed a $5 billion bond in a
three-tranche deal making it the biggest issue from the region
this year.
Like Qatar, TAQA is also listing the offering as a Reg
S/144a deal which makes it open to institutional U.S. investors.
"Abu Dhabi and Qatari credits are much sought-after, even
when the global pictures looks volatile," Silk Invest's Bates
said.
(Reporting by Rachna Uppal and Stanley Carvalho; additional
reporting by Christopher Reich and Daniel Bases in New York;
Editing by Mark Potter, James Dalgleish, Dan Grebler, Leslie
Adler)