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The debt market is heating up now that folks are back from summer vacation, with leading institutions across the banking and energy sectors going to market with significant issuances.
#1- Adnoc is gearing-up to tap the debt market with a USD-denominated bond issuance, featuring five-, 10-, and 30-year tranches, Reuters reported, citing the IFR. JP Morgan and Morgan Stanley were tapped as global coordinators to arrange investor meetings starting yesterday. The two-day roadshow for the offering wraps up today, Bloomberg adds.
In an expansionist mood: Adnoc is ramping up production here at home and pursuing high-profile acquisitions abroad, including a potential EUR 11.7 bn bid for German chemicals maker Covestro.
BACKGROUND- Adnoc set up an SPV for the debt sales two years ago, Bloomberg notes.
ADVISORS- The offering will see BofA Securities, Citi, and First Abu Dhabi Bank act as active bookrunners, while our friends at HSBC will be passive bookrunners alongside Abu Dhabi Commercial Bank, Mizuho, and SMBC Nikko.
#2- Abu Dhabi Commercial Bank (ADCB) plans to raise USD 500 mn from an upcoming 10.5-year, Tier 2 bond issuance, with banks already hired to manage the issuance and investor meetings kicking off yesterday, Reuters reported, citing a bank document it saw.
Tier 2? Tier 2 capital forms a part of a bank’s capital reserves. Unlike core capital listed as tier 1 (such as reserves and equity capital), tier 2 is composed of assets considered more unreliable or risky due to being more illiquid or being harder to quantify.
ADVISORS- ADCB, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JP Morgan, and Mizuho will act as joint managers for the debt sale.
#3- The National Bank of Ras Al Khaimah (Rakbank) plans to raise USD 250 mn in an upcoming 10.25-year, Tier 2 bond issuance, according to the IFR. Investors meetings kicked off on Friday.
ADVISORS- Our friends at Mashreq, along with Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, Bank ABC, Citigroup, Doha Bank, Emirates NBD, First Abu Dhabi Bank, Kamco Invest, QNB Capital, and Standard Chartered were tapped to manage the issuance.
#4- A USD 1 bn green bond issuance by state-owned renewables giant Masdar will go live on the ADX today, state news agency Wam reported. The issuance features two tranches worth USD 500 mn each — one with a five-year tenor and a 4.875% yield, and the other with a 10-year tenor and a 5.25% yield.
REFRESHER- Masdar sold the green bonds in July, after booking USD 4.6 bn in orders with a 4.6x oversubscription rate. Some 70% of the allocation went to international investors, with the remainder going to MENA investors.
