Mubadala tightens price on USD 750 mn issuance + FAB issues a blue bond

Mubadala tightens pricing on USD 750 mn bond: Mubadala’s debt issuing arm Mamoura Diversified Global Holding (MDGH) tightened pricing on its USD 750 mn 10-year senior unsecured bond to 55 basis points over US Treasuries, from initial price thoughts of 90 bps over US Treasuries, Zawya reports. This came on the back of strong demand, with orders of more than USD 5.6 bn.

The returns breakdown: The fixed-rate notes have a semi-annual coupon of 4.625% and carry a 99.699 price to yield 4.663%.

ICYMI- MDGH launched the 10-year benchmark senior unsecured issuance earlier this week under its Global Medium Term Note Program. The notes are set to mature on 16 October 2035 and will be listed on the London Stock Exchange. MDGH has an Aa2 rating from Moody’s AA from S&P, and AA by Fitch — all with stable outlooks. This latest move follows on from a USD 1 bn issuance in May, while 2024 saw an AED 1 bn five-year sukuk and a USD 1 bn 10-year sukuk.

It’s not the only SWF to tap debt markets recently: Abu Dhabi’s ADQ upsized its loan from USD 4 bn to a USD 5 bn senior unsecured dual-tranche term loan, following strong demand. The three-year tranche was priced at at an interest margin of 70 basis points (bp) over the Secured Overnight Financing Rate (SOFR), leading to an all-in pricing of 85 bps, while the five-year tranche carried a margin of 85 bps over SOFR, resulting in an all-in pricing of 100 bps.

ADVISORS- Abu Dhabi Commercial Bank, Citi, First Abu Dhabi Bank, and Standard Chartered Bank acted as joint global coordinators. Bank of China, Deutsche Bank, Goldman Sachs International, Mizuho, and Santander joined as joint lead managers and bookrunners. Standard Chartered also handled billing and delivery.

IN OTHER DEBT NEWS-

FAB issues second blue bond, raising USD 20 mn: First Abu Dhabi Bank (FAB) has issued a USD 20 mn three-year blue bond, according to a press release. The move brings FAB’s total blue bond issuance to USD 70 mn, with its first blue bond issuance in August — also a first in the region — raising USD 50 mn.

Where will the funds go? Proceeds will go towards its wastewater treatment plants in Abu Dhabi and Al Ain which have a capacity of 430k cubic meters a day, as well as towards a renewable energy-powered desalination facility producing 37 mn liters per day with 700 MWh of battery storage.