Tuesday, Jun 28, 2011
(Adds banker, company comment in the 2nd, 3rd paragraphs.)
DUBAI (Zawya Dow Jones)--Abu Dhabi-based Dolphin Energy, in which Occidental Petroleum Corp. (OXY) and Total S.A. (TOT) are shareholders, will launch a U.S. dollar, benchmark bond sale as soon as market conditions improve, a banker familiar with the deal said Tuesday.
"The company is ready to issue a bond as soon as global market conditions improve," the banker, who declined to be identified, told Zawya Dow Jones.
"Dolphin Energy Limited LLC will now be actively monitoring the market over the coming days and will release terms on its USD benchmark 144A/RegS bond issue in an appropriate window of execution. The transaction may price in the very near future," the company confirmed in an emailed statement.
While several U.A.E. entities including the government of Dubai and its flag carrier Emirates Airline raised debt recently, global market conditions have deteriorated in the past few days due to the euro-zone debt crisis and the Federal Reserve's downbeat assessment of the U.S. economy.
Many analysts reckon market sentiment will improve if a final resolution to the Greek debt problem is in place over the coming few days.
Dolphin met fixed income investors in the United Arab Emirates, the U.K. and the U.S. earlier this month, with the last meeting held in New York on June 22.
The Royal Bank of Scotland, BNP Paribas, Abu Dhabi Commercial Bank, Mitsubishi UFJ Securities and SG CIB arranged the meetings on behalf of Dolphin Energy, the banker said.
The company plans to raise more than $1 billion to refinance existing debt, two other people familiar with the situation told Zawya Dow Jones in mid-June.
"The bonds may be issued in bullet or amortising form or a combination thereof and the ultimate size may vary but will not exceed $1.93 billion," one of the bankers had then noted.
Abu Dhabi government investment firm Mubadala owns 51% in Dolphin, with Total and Occidental each holding 24.5% stakes.
Dolphin Energy in 2009 raised a total $4.1 billion to refinance debt, fund the construction of its Taweelah-Fujairah pipeline project, and pay for refinancing-related fees.
The money was raised via a $1.25 billion bond, $1.4 billion bank debt and a $218 million facility insured by Italian export credit agency Sace. Total and Occidental also co-lent $1.2 billion at the time.
-By Nikhil Lohade, Dow Jones Newswires, +9714 446 1694, nikhil.lohade@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
28-06-11 1217GMT
