* Abu Dhabi's TAQA and Bahrain-based GIB to issue this wk
* TAQA eyeing 2-tranche deal, in full expansion mode
* GIB plans 5-yr bond, size to be determined
* Borrowers seek final issuance windows before yr-end
(Adds detail, background)
DUBAI, Dec 4 Abu Dhabi National Energy Co
(TAQA) is preparing to price a two-tranche
dollar-denominated bond issue, maturing 2018 and 2023, after
roadshows conclude on Tuesday, arranging banks said.
TAQA, which is 75-percent owned by the Abu Dhabi government,
joins Gulf International Bank in pricing new issues
as regional borrowers line up to get deals away before investors
close books for the year.
TAQA, which is buying a number of BP's North Sea
assets, said last week it had hired banks to arrange investor
meetings ahead of a benchmark-sized issue, typically at least
TAQA is a frequent bond issuer and familiar to international
investors, in part due to its global profile. At the end of the
third quarter, it had a cash position of 3.5 billion dirhams
($950 million) as well as 14.8 billion dirhams ($4 billion)
worth of unused credit facilities.
The company has $1.75 billion in bond maturities next year.
It last tapped markets for a dollar-denominated issue last
December with a $1.5 billion two-tranche bond to refinance debt.
TAQA announced last week that it bought a 53.2-percent
operating interest in an oil block in Iraqi Kurdistan from
General Exploration Partners and earlier this year bought a 50
percent stake in Kurdish power plant Chamchamal.
BNP Paribas, Citigroup, HSBC Holdings
, National Bank of Abu Dhabi and Standard
Chartered are mandated to arrange the deal.
SAUDI INTEREST SEEN FOR GIB
Bahrain-based Gulf International Bank is a less familiar
name in the global fixed income community, although it too
benefits from strong state-ownership.
GIB released early price talk for a five-year bond on
Tuesday at a spread of 165 to 175 basis points over midswaps.
The issue size is yet to be determined, and it will be GIB's
first dollar deal in seven years, according to IFR Markets.
GIB is 97.2-percent owned by the Saudi government, a level
of risk international investors are likely to be more
"GIB will see more Saudi interest, but interest for TAQA
will be global," a regional fixed income trader said, declining
to be identified.
Earlier this year, GIB conducted investor meetings in
Malaysia for a possible Islamic bond, or sukuk, under a 3.5
billion ringgit programme but no issue has yet materialised.
Other shareholders are Gulf sovereign wealth funds including
Kuwait Investment Authority and Qatar Holding.
GIB picked itself, JP Morgan Chase Inc, National
Bank of Abu Dhabi, Barclays Plc, Standard
Chartered Plc and Societe Generale to arrange
The Kingdom of Morocco also concludes roadshows this week
for a debut dollar issue.
Last week, International Petroleum Investment Co (IPIC)
priced a $2.9 billion equivalent dual-currency bond.
Gulf Investment Corp also priced a
$500 million five-year bond in late November, its first dollar
deal since 2005.
(Reporting by Mala Pancholia and Rachna Uppal; Editing by Amran