* Demand for TAQA bond strong, order books over $10 bln
* Co to raise $750 mln 2018 bond at UST+200 bps
* $1.25 bln 2023 bond launched at UST+210 bps
By Stanley Carvalho
ABU DHABI, Dec 5 Abu Dhabi National Energy Co
(TAQA), the state-owned firm buying some of BP's
North Sea assets, will raise $2 billion from its two-part
bond, amid strong demand for the deal.
Proceeds from the bond sale are to be used for refinancing
debt that is coming to maturity, a source familiar with the
matter said on Wednesday, declining to be identified.
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 2012
Global demand for top-rated Gulf debt is currently very
strong and spreads have tightened significantly to attractive
levels for state-linked borrowers such as TAQA and International
Petroleum Investment Co (IPIC). IPIC raised $2.9
billion from a bond sale last month.
TAQA, over 70 percent-owned by the Abu Dhabi government,
launched a $750 million bond maturing 2018 at a spread of 200
basis points over U. S. Treasuries and a $1.25 billion bond
maturing 2023 at 210 basis points over U. S. Treasuries.
Final pricing at launch was slightly tighter than guidance
issued earlier in the day, indicating strong investor
Regional traders said there was substantial demand for
TAQA's new issue, with order books seen in excess of $10 billion
at 1000 GMT, and the bonds already trading higher in the grey
"We are still in the process of book building. We have seen
strong demand and expect to finalise the transaction late
Wednesday or by Thursday," a spokesman for TAQA told Reuters
earlier in the day.
BNP Paribas, Citigroup Inc, HSBC Holdings, National Bank of
Abu Dhabi and Standard Chartered Plc are mandated bookrunners on
TAQA is the second Gulf borrower to issue bonds this week,
after Gulf International Bank priced a $500 million
five-year deal on Tuesday, as regional companies line up to get
deals away before investors close books for the year.