(Adds final pricing, context)
DUBAI, April 29 Dubai-based shopping mall
developer Majid Al Futtaim priced a $500 million bond issue with
a ten-year lifespan on Tuesday, continuing a recent revival in
offers from Gulf-based borrowers.
Final pricing for the deal came at the tight end of revised
guidance of between 195 and 200 basis points over midswaps,
according to a document from lead managers. Initial guidance had
been set earlier on Tuesday in the 212.5 bps area.
The coupon for the bond was 4.75 percent with a reoffer
price of 99.835.
High demand for the offer - the order book exceeded $2
billion just before it was closed, according to the leads -
helped the company reduce the cost of its borrowing.
The transaction reflects strong investor interest in
Gulf-based borrowers, who have been returning to the
international debt market in recent days after several months of
relatively light issuance.
Amid geopolitical tensions in Ukraine and economic
instability in some emerging markets, Gulf economies have stood
out because of their stability, thanks to their trade and state
budget surpluses. The contrast appears to created attractive
conditions for them to issue bonds.
Abu Dhabi National Energy is set to price a $750
million ten-year bond on Tuesday, having cut pricing by 20 bps
from initial guidance to 115 bps over midswaps after it received
orders worth over three times its planned size.
This follows deals last week from the Government of Dubai
and Abu Dhabi state investment fund Mubadala.
Family-owned Majid Al Futtaim picked Barclays,
Credit Agricole, Citigroup, Emirates NBD
, HSBC and Standard Chartered to
arrange its sale, which is its first public debt issue since
Then, it printed a $500 million hybrid bond, one of the
first offers of such an instrument from the Gulf Arab region.
Hybrid bonds have both debt and equity-like characteristics.
(Reporting by David French; Editing by Olzhas Auyezov and