Abu Dhabi-based Aabar Investments has announced that it plans to issue up to $2bn of convertible bonds to International Petroleum Investment Company (Ipic) for internal use.

“The proceeds of the bonds will be used by the company for general corporate purposes,” Aabar said in a statement posted on the Abu Dhabi Securities Exchange (ADX) website on 1 April. “There is no set conversion date for the convertible bonds.”

In the same statement, Aabar said it was considering the issuance of convertible bonds worth up to AED7,346m at a recommended conversion price of AED2.5 per share.

The board of directors plans to finalise the bond issuance on 29 April. It is also currently mulling a $1.7bn takeover of Arabtec, one of the largest construction firms in the region (MEED 10:1:10).

Ipic is wholly-owned by the government of Abu Dhabi and holds a 71 per cent stake in Aabar, with the rest listed on the ADX.