Mubadala plans dollar bond

Benchmark-sized bonds are typically a minimum of $500 million. Mubadala plans to launch a benchmark-sized bond this week (FILE)

Abu Dhabi investment fund Mubadala plans to launch a dual-tranche benchmark sized bond this week, according to communication sent by arranging banks to investors.

Mubadala is eyeing a five-year and 10-year tranche for a bond which is expected to be issued this week, the document seen by Reuters showed.

Benchmark-sized bonds are typically a minimum of $500 million. Two market sources indicated a potential deal size of between $1.5 billion to $2.5 billion.

Government-owned Mubadala, which has stakes in AMD, General Electric, and private equity firm Carlyle, concludes roadshows on Tuesday which took in Europe, Asia, the United States and UAE.

A bond from Mubadala would be the second Abu Dhabi entity to tap international capital markets this year after International Petroleum Investment Co (Ipic) issued $4.3 billion equivalent in sterling and euro-denominated bonds in March.

"On the current curve, the 5-year should be around 3-ish per cent and the 10-year, 5.5 per cent. Basically very close to Ipic 16s and 21s," one source said.

Arranging banks are National Bank of Abu Dhabi, Barclays Capital, HSBC, Standard Chartered and Societe Generale.

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