DUBAI- Abu Dhabi's state fund Mubadala sold $4 billion in three-tranche bonds on Tuesday, attracting orders worth nearly six times that amount, a document from one of the banks leading the issuance showed.
Mubadala sold $1 billion in six-year bonds at 210 basis points over midswaps, $1 billion in 10-year bonds at 235 bps over midswaps and $2 billion in 30-year dual-listed Formosa bonds at 3.95%, the document showed.
Mubadala tightened the pricing by 40 bps for the six- and 10-year tranches and by 42.5 bps for the 30-year Formosa tranche from its initial price guidance earlier on Tuesday.
The sale received more than $23.5 billion in orders, the bank's document showed.
"The pricing provides a 25-30 bps cushion to investors," a Dubai-based fixed income strategist said.
"Investors continue to demonstrate robust appetite for high-quality GCC names. Mubadala has received more bids at the longer end of the curve at a time when other regional entities are able to attract interest only in the front end of the curve, showcasing investor confidence in long-term risks for Abu Dhabi sovereign-owned entities," he said.
The state fund's issuance comes as Kuwait's Equate Petrochemical Company also launched a bond sale on Tuesday, the Gulf's first corporate public bond issuance since the region's debt markets came to a standstill in late February.
An issuance drought due to the coronavirus outbreak and tumbling oil prices ended when Qatar issued $10 billion in bonds in early April. Abu Dhabi and Saudi Arabia followed with large bond sales shortly after and Qatar National Bank sold bonds last week, becoming the Gulf's first non-sovereign public issuance in the international debt markets.
Mubadala hired Banca IMI, BNP Paribas, BofA Securities, First Abu Dhabi Bank, HSBC, Natixis and Societe Generale to arrange investor calls on Monday, sources said.
Formosa bonds are sold in Taiwan by foreign borrowers and are denominated in currencies other than the Taiwan dollar. All three tranches will be listed on the London Stock Exchange and the Formosa tranche will also be listed on the Taipei Exchange TWOmad.TWO .
(Reporting by Yousef Saba; Editing by Kirsten Donovan and Raissa Kasolowsky) ((Yousef.Saba@thomsonreuters.com; +971562166204))