Tuesday 02, October 2018 by Kudakwashe

Mubadala plans $6 billion debt reorganisation

 

The planned reorganisation of the bonds means International Petroleum Investment Company (IPIC) and Mubadala Development Company (MDC)'s debt will sit under only one investment vehicle.

Abu Dhabi’s state investor, IPIC, is reorganising about $6 billion of debt following its merger with state investment fund MDC last year.

IPIC has asked bondholders to agree to Mubadala Investment Company - the merged entity - becoming guarantor and MDC the issuer of over $6 billion of IPIC's existing debt.

In a statement, Mubadala said that the end result will be a more efficient single, rated entity within the group responsible for our capital market funding activities.

According to IPIC's announcement, the request to bondholders covers holders of $1.5 billion IPIC bonds due in 2020, EUR 1.25 billion bonds due in 2021 as well as $1.5 billion due in 2022 and EUR 850 million due in 2023.

Additionally, the request also covers GBP 550 million maturing in 2026 and $750 million due in 2041.

BNP Paribas, Citi, Deutsche Bank as well as First Abu Dhabi Bank (FAB), and Merrill Lynch International have been appointed to work on the proposed transaction, reported Reuters.

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