UAE's Taqa sets guidance for dollar bond -bankers
By John Irish
DUBAI, July 24 (Reuters) - Abu Dhabi National Energy Co TAQA.AD (Taqa) gave price guidance for a multi-tranche benchmark dollar bond on Thursday and closed a $1 billion convertible bond, an executive and bankers said.
Taqa set initial guidance at 325 basis points over U.S. treasuries for the 5-year and 10-year tranches of a bond sale targeting global investors, said three bankers familiar with the deal, who declined to be identified.
The Abu Dhabi-based firm also gave guidance of 340 basis points over U.S. treasuries for the 30-year tranche of the bond sale, to be used for general funding, the bankers said.
State-controlled Taqa, which in early July bought North Sea equity interests from Shell (RDSa.L) and Exxonmobil XON.N, has yet to determine the value of the "benchmark offering", chief financial officer Doug Fraser said on Thursday.
Benchmark size is typically considered to be at least $500 million. Barclays Captal, National Bank of Abu Dhabi and Royal Bank of Scotland are the joint bookrunners for the bond.
The Arab state-run utility and petroleum producer has been tapping debt markets to help finance an aggressive expansion plan for Abu Dhabi, the world's fifth-largest oil exporter.
It struck deals worth $11 billion around the world last year, including the purchase of Canada's Primewest Energy Trust.
Last month, Taqa said it was raising a $3 billion loan to refinance existing debt.
The firm has also given final pricing for its debut $1 billion convertible bond sale at 58 basis points over 3-month Libor, bankers said.
The notes, which have a short conversion period, mature on Sept. 1, Standard & Poor's said on Thursday, after rating the notes AA-.
The conversion price of the bonds is 2 dirhams ($0.545) per share, S&P said. Shares of Taqa closed at 2.96 dirhams on Thursday. Merill Lynch and Barclays Capital advised on the sale. (Reporting by John Irish in Dubai and Maya Thatcher in London; Editing by Quentin Bryar)
