Wednesday, May 09, 2012
DUBAI (Zawya Dow Jones)--Mubadala Development Company, a strategic investment firm owned by the Abu Dhabi government, had 29.62 billion U.A.E. dirhams ($8.07 billion) of committed capital expenditures at the end of last year and expects to deploy the majority of that this year, it said in an updated bond prospectus.
The amount represents a decrease from the AED32.73 billion of capital and investment spending Mubadala registered last year.
Mubadala's "committed capital and investment expenditure reflects amounts which it is legally committed to expend in future years, although the majority of the expenditure is expected to be incurred in the 12 months ending 31 December 2012," the prospectus says.
The government-owned Mubadala also said it anticipated that capital and investment expenditure this year would likely be in line with its AED20.1 billion annual average over the past three years.
Mubadala, which in April reported a AED3.2 billion loss for 2011 as the value of its financial investments fell, is a central component of Abu Dhabi's drive to diversify its economy away from oil by spending money on new industries and making other investments that add depth to the mix of activities in the emirate.
Among its holdings are the Advanced Technology Investment Company, a semiconductor manufacturing unit, Mubadala GE Capital, a corporate finance joint venture, and the Masdar project, a renewable energy hub near Abu Dhabi's international airport. It also has interests in oil and gas and owns half of Emirates Aluminium, a smelter on the outskirts of Abu Dhabi.
A substantial portion of anticipated capital expenditures between this year and 2016 are expected to go toward those businesses, the prospectus says.
Mubadala's committed expenditures were AED5 billion for its corporate and acquisitions segment at the end of last year, including commitments to Mubadala GE Capital loans and funds run by the Carlyle Group, a private equity firm in which Mubadala owns a stake.
Committed expenditures to healthcare amounted to AED4.69 billion, while oil, gas and energy took up AED3.85 billion.
Mubadala plans to fund future capital expenditures through a combination of funding from the Abu Dhabi government and borrowings, and to a lesser extent cash flow from operations, the prospectus says.
-By Asa Fitch, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
09-05-12 1107GMT
