Mubadala mulls project bond

Mubadala, the Abu Dhabi-based and -backed business development and investment company, is considering a project bond to help finance its six largest projects, estimated at $5.5 billion (Dh20.1bn).

Greg Fewer, Assistant Director and Advisor, Project & Corporate Finance Unit at Mubadala said launching a project bond will provide a new liquidity pool in a market burdened by shrinking capital.

"We are very keen to do it. We are exploring and considering project bonds as a liquidity alternative for all our major projects," he said.

"Here, you generally want at least $500m, so you have to find a project that can support this amount of long-term financing and needs to carry an investment grade rating. We have very strong and big projects," he added. Project bonds are normally sold or issued to someone directly involved in the project, typically the primary developer.

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