Abu Dhabi National Energy Co was due to price a $750 million bond with a 10-year lifespan on Tuesday, arranging banks said, as high interest from investors helped the company to lower the cost of borrowing the cash.
The transaction was formally launched to price at 115 basis points over midswaps, a document from the lead banks said, down from the initial guidance of 135 bps over the same benchmark released earlier in the day.
Order books for the deal were close to $2.5 billion, an earlier update from lead managers had said. The transaction is structured as Reg S/144a, meaning it is open to investors in the United States.
Dubai-based shopping mall operator Majid Al Futtaim, which is also completing a bond issue on Tuesday, saw a similarly stark reduction in pricing due to high investor demand, reflecting strong interest in Gulf-based issuers.
TAQA, rated A3/A, said last week it was meeting investors ahead of a possible bond issue. The transaction is being arranged by Bank of America-Merrill Lynch, Mitsubishi UFJ Securities, Royal Bank of Scotland, Societe Generale and Standard Chartered.