Dolphin Energy to raise $1bn financing

04 May 2015

Gas pipeline company has approached banks

  • Abu Dhabi’s Dolphin Energy is seeking a financial advisor to raise $1bn in financing
  • Dolphin is seeking incremental finance on existing facilities
  • It sucessfully refinanced a $3.5bn debt in 2009, with Royal Bank of Scotland as lead advisory

Abu Dhabi’s Dolphin Energy has approached banks for an advisory role to raise $1bn in financing.

Reuters reports that Dolphin is seeking incremental finance, which would allow it to add a new tranche to an existing loan facility.

Dolphin Energy is owned by Mubadala Development Company of Abu Dhabi, France’s Total and the US’ Occidental Petroleum.

It owns and operates a natural gas pipeline between Qatar and UAE, with a capacity of 3.2 million cubic feet a day (cf/d). The company has a contract to transfer 2.3 billion cubic feet a day (cf/d), which is distributed by three Dolphin-owned pipelines to Fujairah, Al-Ain and across the border into Oman.

Negotiations between the UAE and Qatar over a price for extra gas transfers have not yet been successful, but were increased on a short-term basis in November.

Dolphin refinanced its $3.5bn debt in 2009, including $1.25bn bond issue and loans from 22 commercial banks.

The bond issue was priced at 337.5 basis points above US treasuries, 3.6 per cent below the guidance price. The success of the issue led Dolphin to increase the bond issue from the original $750m.

The financing was arranged by UK-based Royal Bank of Scotland (RBS), which also worked with French BNP Paribas, local National Bank of Abu Dhabi and local Abu Dhabi Commercial Bank to arrange the bond issue.

RBS has since withdrawn from Middle Eastern markets.

Dolphin also plans to install a 70km pipeline from north of Al-Ain to Sharjah to supply the Sajaa gas plant. Prequalification for an engineering, procurement and construction contract took place in 2014.

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