Mubadala to get more capital

Mubadala to get more capital. (EB FILE)

Mubadala is to get more capital infusion from the government this year in the light of a still-tight credit market.

A senior official from the Abu Dhabi-owned investment arm said although its access to capital has not been impacted by the recent events, the company would still need additional equity to smooth out the cash flow.

"I'm sure [we'll take more]," Matthew Hurn, Executive Director, Group Treasury at Mubadala, said on the sidelines of an event in Dubai. "Last year, we didn't use the full amount of the equity amount that was budgeted because we have successful bond issuance."

The firm last year tapped the international bond through $1.25bn (Dh4.6bn) five-year bonds and $500m 10-year bonds. The firm, Hurn said, has no immediate plans of tapping the capital debt market.

Out of the Dh21bn approved capital contributions for 2009, the company received only Dh8.8bn from the government during the first six months of 2009.

Asked how much was drawn out for the whole year, Hurn said: "The financial result will be available by mid-March so we can't comment on that. But at the half-year it was Dh8.8bn. The full-year number is not much different from that." Hurn said the company is currently drafting the total funding requirements for this year.

 

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