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The Arab Energy Fund (TAEF) has mandated banks to arrange a series of fixed income investor calls starting 23 June 2025.
A potential issuance of US dollar-denominated Regulation S 3-year senior unsecured notes under TAEF’s Global Medium Term Note Programme may follow, subject to market conditions.
Initial price thoughts (IPTs) are in the area of SOFR mid-swaps plus 60 basis points.
Citi, Commercial Bank of Dubai, DBS Bank Ltd., and Emirates NBD Capital are acting as joint lead managers and bookrunners for the transaction.
If issued, the notes are expected to be rated Aa2 by Moody’s and AA+ by Fitch. The issuer itself holds ratings of Aa2 (stable) from Moody’s, AA- (stable) from S&P, and AA+ (stable) from Fitch.
The notes will be listed on Euronext Dublin.
Vicky Bhatia, CFO of TAEF, said: “Our plan is to establish a funding curve starting with three years, and at some point in the future we may consider also going up to seven years.”
TAEF has previously completed private placements for three-year tenors at levels ranging from SOFR+40 to SOFR+45 basis points.
(Reporting by Brinda Darasha; editing by Seban Scaria)
