Abu Dhabi’s sovereign wealth fund, Mubadala, has begun marketing five-year bonds denominated in the local UAE dirham, signaling a strategic move to tap into domestic capital markets. The issuance is being managed through Mamoura Diversified Global Holding, the fund’s established debt vehicle.
Details of the Bond Offering
According to an arranging document, the price guidance for the five-year bonds has been set at approximately 4.45 percent. While the total value of the bond sale has not been disclosed, the offering has attracted a powerful syndicate of local and international financial institutions to manage the process. The joint lead managers and bookrunners include Abu Dhabi Commercial Bank, Emirates NBD Capital, First Abu Dhabi Bank, Bank of China, Citi, Goldman Sachs International, HSBC, Industrial and Commercial Bank of China, National Bank of Kuwait, and Standard Chartered Bank.
Strategic Capital Deployment
This bond issuance follows a period of significant activity for Mubadala. The fund reported a substantial increase in capital deployment last year, investing AED 119 billion ($32 billion), which marks a nearly 34 percent rise from the previous year. This active investment strategy has been successful, with the fund delivering impressive annualised returns of over 10 percent for the past five years. Raising capital through local currency bonds can provide a stable and diversified funding source to support its ongoing global investment mandate.
Recent Portfolio Adjustments
Mubadala continues to actively manage its extensive portfolio. Recently, the fund sold its 75 percent stake in the short-term car rental company Getir Araç to Turkey’s TikTak New Generation Transportation Solutions and Car Rental. In another major transaction last September, its unit Mamoura Diversified Global Holding executed a secondary share sale of 342 million du shares, raising AED 3.15 billion ($858 million). These moves highlight the fund’s dynamic approach to optimizing its assets and recycling capital into new opportunities.
About Mubadala Investment Company
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for its shareholder, the Government of Abu Dhabi. Its portfolio spans six continents with interests in multiple sectors and asset classes.
Source: AGBI
