Taqa sells $1.5bn bonds in first of new wave of issuance

10 September 2009

Taqa issue demonstrates continued appetite for Middle East bonds

Abu Dhabi National Energy Company (Taqa) has raised $1.5bn in a bond issue, kicking off a busy few weeks for the markets.

Saudi Arabia-based Islamic Development Bank (IDB) and Abu Dhabi’s Tourism & Development Investment Company (TDIC) both plan to issue bonds in the next few weeks.

Taqa priced a $1bn five-year bond at 250 basis points above US treasuries, and a $500m 10-year bond at 287.5 basis points above US treasuries.

France’s BNP Paribas, the UK’s Standard Chartered, HSBC and Japan’s Mitsubishi UFJ arranged the bond issue.

IDB has priced its $850m sukuk issue at 40 basis points above mid-swaps, the mid-point of bids and offers on similar bonds.

TDIC has mandated HSBC, Standard Chartered, and Abu Dhabi Commercial Bank to arrange its bond issue. The company hopes to raise up to $1bn in a sukuk issue before the end of the month.

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