• Register

IPIC prints $3.75bn in notes with $16bn in global demand

United Arab Emirates: Tuesday, November 01 - 2011 @ 09:31

Order books across the three tranches totaled $16bn, over 4x oversubscribed with over 1000 orders from over 900 individual accounts.

The quality of the book was reflected both in investor type and in geography, illustrating the strong demand for both IPIC and Abu Dhabi credit.

Pricing across all three tranches tightened from initial price guidance resulting in the tightest new issue premium (NIP), after curve extension, for an Emerging Market (EM) corporate issuer since summer.

The NIP was 25bps and 45bps for the Notes due 2017 and 2022 respectively. Furthermore, IPIC’s spread differential from 10 to 30 year notes was 3/8ths, reflecting one of the MENA region’s flattest differentials, even when compared to other international corporates.

IPIC will use the proceeds from the issuances to repay existing debt.

Other key highlights include:

•1st 100% owned Abu Dhabi issuer to issue 30YR Notes;

•2nd largest EM issuance, only behind IPIC’s euro and sterling issuance in March of 2011;

•Announced at the height of Eurozone and market volatility, conducted global roadshow in the US and Europe, and printed a multi tranche deal with intra-day execution on the back of the positive news coming out of the Eurozone.

•Only the 3rd 30yYR deal in 2011YTD in the whole of EM.

•Unique short and medium (half year extensions) tenures to prudently cascade maturities.

“Setting a 30YR benchmark is a milestone for both IPIC and Abu Dhabi. The success, both measured from demand in size and tenor across all tranches, reinforces that even in a backdrop of global volatility and uncertainty, IPICs credit story and the fundamentals of Abu Dhabi are strong,” IPIC’s Managing Director, Khadem Al Qubaisi stated.

IPIC is a 27 year old investment arm of the Government of Abu Dhabi which invests in the international energy and energy related industries. As at 30 June 2011, IPIC has $62bn in assets and posted a half year profit of $1.2bn

Today's Top Stories

Posted by

Tuesday, November 1- 2011 @ 9:31 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

AME Info Services

Business DirectoryVIEW ALL

Search by name

Search by industry

Browse alphabetically


Search for jobs

Latest Jobs