Abu Dhabi's Mubadala sells US$1.5b two-tranche bonds

[DUBAI] Abu Dhabi state fund Mubadala sold US$1.5 billion two-tranche bonds on Thursday, a document showed, returning to the debt markets less than three months after it raised US$1.1 billion.

The Mubadala unit through which the bonds have been issued, Mamoura Diversified Global Holding, sold 10-year paper worth US$500 million and 30-year worth US$1 billion, an investor note showed on Thursday.

The 10-year bonds offered investors an interest rate equivalent to 95 basis points over mid-swaps, while the 30-year Formosa bonds offered a 3.4 per cent rate.

Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwanese dollar.

Mamoura had given an initial price guidance of around 130 basis points over mid-swaps for a 10-year tranche and around 3.7 per cent for 30-year Formosa bonds.

The issuance comes on the heels of a US$2 billion bond sale by the Abu Dhabi government this week, which investors said was more aimed at offering new paper to the market than to fulfil budgetary needs, which have been reduced by rising oil prices.

REUTERS