Abu Dhabi’s Mubadala begins talks on dollar-denominated bond issuance


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Abu Dhabi’s Mubadala begins talks on dollar-denominated bond issuance

Mubadala Investment Company, a state-owned entity of Abu Dhabi that analysts often contemplates as a sovereign wealth fund affiliated with the Abu Dhabi Government, had been in talks with multiple heavyweight lenders over a likely issuance of dollar-denominated bonds at a critical time when a number of Mideast economic majors had been on the lookout of fresh liquidities in order to cushion up their economies amid a double whammy of a multi-year low crude oil price alongside a rapidly spreading global-scale pandemic, at least two banking sources directly briefed over the subject-matter had unveiled on Sunday, the 3rd of May 2020.

In point of fact, latest move from the Mubadala Investment Company to raise debts in form of US Dollar denominated bonds, which had $1.5 billion of ten-year notes maturing in November, came forth a month after the Governments of Abu Dhabi, Saudi Arabia and Qatar had augmented $24 billion in fresh capital in order to spur up their financial resources over the narratives of a low crude oil futures’ prices alongside steep social distancing measures, which might be the beginning of a deep recession across the Gulf.

Although, two of the banking sources were quoted saying on condition of anonymity on Sunday (May 3rd) that the Mubadala had yet to authorize a lender to sell its debts, but between 10 to 15 major lenders were in the race to win the deal, in context of a clattering outlook in Mideast economy, Mubadala’s dollar-denominated bonds would highly unlikely to persuade western investors as perceived during the Aramco IPO, suggested analysts.