Tuesday, May 24, 2011
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DUBAI (Zawya Dow Jones)--Abu Dhabi government investment firm Aabar Investments is launching an EUR750 million unsecured exchangeable bond over Daimler AG (DAI.XE) shares that's due in 2016 amid favorable market conditions, according to a document seen by Zawya Dow Jones Tuesday.
The investment firm's commitment to its investment in the German luxury-car maker remains unchanged, the document says. Aabar is the largest shareholder in Daimler with a 9.1% stake.
"Aabar's long term partnerships with Daimler in Tesla Motors Inc. and Mercedes-Benz Grand Prix Limited reflect Aabar's strong belief in Daimler by continuing to support Daimler and its management," the document says.
"In launching the bonds, Aabar is taking advantage of the current market conditions and the attractive financing the equity-linked market currently offers," it adds.
The bonds are expected to represent about 12.2 million, or 1.1%, of the current total number of issued and outstanding Daimler shares, the document says.
Aabar will use the proceeds of the offering, which is managed by BofA Merrill Lynch, Deutsche Bank and Morgan Stanley, for general corporate purposes.
The bonds will be issued at par, are expected to carry a semi-annual coupon of 3.5% to 4% per annum, and will be exchangeable into ordinary shares of Daimler, according to the document.
"If not previously exchanged or redeemed the bonds will be redeemed at par five years from the settlement date," the document says. "The final terms are expected to be determined and announced today and settlement is expected to take place on or about 27th May 2011."
Aabar is a diversified investment company for parent International Petroleum Investment Co., or IPIC, an Abu Dhabi government firm targeting international oil, gas and petrochemical assets.
Aabar said that, in conjunction with the offering, it had entered Tuesday "into certain derivative transactions in relation to a number of Daimler Shares," which may result in significant volumes in trading of Daimler stock.
-By Mirna Sleiman, Dow Jones Newswires; +9714 446-1698; mirna.sleiman@dowjones.com
(Nikhil Lohade in Dubai contributed to this report.)
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
24-05-11 0812GMT
