Wednesday, Feb 08, 2012
DUBAI (Zawya Dow Jones)--Abu Dhabi-based Dolphin Energy, in which Occidental Petroleum Corp. (OXY) and Total S.A. (TOT) are shareholders, has launched a $1 billion, 10-year bond yielding 5.5%, after getting strong demand, a banker familiar with the matter said early Wednesday.
Orders for the bond crossed $6 billion late Tuesday once the U.S. market opened, the banker, who declined to be identified, told Zawya Dow Jones. Final pricing was also tighter than the initial talk of about 5.75%, he added.
The bond, which will mature on December 15, 2021, will be listed on the Irish Stock Exchange.
BNP Paribas, RBS, Mitsubishi UFJ, Societe Generale CIB and Abu Dhabi Commercial Bank were book runners of the issue.
The company had told potential investors that it plans to use the bond proceeds to refinance an existing bank facility and to pay a distribution to Dolphin shareholders, the banker said.
The company had met with fixed income investors in the United Arab Emirates, the U.K. and the U.S. in June 2011, but eventually delayed issuing a bond due to uncertain global market conditions at the time.
Abu Dhabi government investment firm Mubadala owns 51% in Dolphin, with Total and Occidental each holding 24.5% stakes, according to Zawya.com.
-By Nikhil Lohade, Dow Jones Newswires, +9714 446 1694, nikhil.lohade@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
08-02-12 0444GMT
