Abu Dhabi’s HEA raises USD 550 mn via bond issuance

Another borrower has just tested the debt-market waters: Abu Dhabi-based offshore marine logistics company HEA Energy raised USD 550 mn through a three-year senior secured bond carrying an 8.75% coupon, Zawya reports. The issuance was priced at 99.33% of its face value and has a borrowing limit of up to USD 650 mn.

Where’s the money going? Proceeds will be used to refinance existing debt, fund newbuild capex, and support general corporate purposes.

HEA Energy? Founded in 2022, the company operates in offshore marine logistics, specializing in jack-up barges, accommodation vessels, and battery-powered subsea vessels. The bond is backed by a fleet of offshore support assets, including 16 operating vessels and 13 newbuilds.

ADVISORS- DNB Carnegie, Fearnley Securities, and Pareto Securities acted as global coordinators and joint bookrunners on the transaction.

The bigger picture: The issuance adds to signs that Gulf debt markets are reopening after a war-induced slowdown. Gulf sovereigns and corporates raised some USD 11.2 bn in May alone, Bank Nizwa’s Muhammad Ahsan previously told us, while June has already seen borrowers return to market, including Dubai Islamic Bank’s USD 1 bn AT1 sukuk.

What’s next? HEA Energy plans to secure ratings from at least two among Moody’s, S&P, and Fitch within 12 months. The bonds are also expected to be listed on Euronext ABM.