* Mubadala sells $1 bln in six-year bonds
* Also sells $1 bln in 10-year, $2 bln in 30-year
* Orders top $23.5 billion for the deal
* Pricing tightened by 40-42.5 bps from initial guidance
(Adds launch, final pricing, demand, background)
By Yousef Saba
DUBAI, May 12 (Reuters) - Abu Dhabi's state fund Mubadala
sold $4 billion in three-tranche bonds on Tuesday, attracting
orders worth nearly six times that amount, a document from one
of the banks leading the issuance showed.
Mubadala sold $1 billion in six-year bonds at 210 basis
points over midswaps, $1 billion in 10-year bonds at 235 bps
over midswaps and $2 billion in 30-year dual-listed Formosa
bonds at 3.95%, the document showed.
Mubadala tightened the pricing by 40 bps for the six- and
10-year tranches and by 42.5 bps for the 30-year Formosa tranche
from its initial price guidance earlier on Tuesday.
The sale received more than $23.5 billion in orders, the
bank's document showed.
"The pricing provides a 25-30 bps cushion to investors," a
Dubai-based fixed income strategist said.
"Investors continue to demonstrate robust appetite for
high-quality GCC names. Mubadala has received more bids at the
longer end of the curve at a time when other regional entities
are able to attract interest only in the front end of the curve,
showcasing investor confidence in long-term risks for Abu Dhabi
sovereign-owned entities," he said.
The state fund's issuance comes as Kuwait's Equate
Petrochemical Company also launched a bond sale on Tuesday, the
Gulf's first corporate public bond issuance since the region's
debt markets came to a standstill in late February.
An issuance drought due to the coronavirus outbreak and
tumbling oil prices ended when Qatar issued $10 billion in bonds
in early April. Abu Dhabi and Saudi Arabia followed with large
bond sales shortly after and Qatar National Bank sold bonds last
week, becoming the Gulf's first non-sovereign public issuance in
the international debt markets.
Mubadala hired Banca IMI, BNP Paribas, BofA Securities,
First Abu Dhabi Bank, HSBC, Natixis and Societe Generale to
arrange investor calls on Monday, sources said.
Formosa bonds are sold in Taiwan by foreign borrowers and
are denominated in currencies other than the Taiwan dollar. All
three tranches will be listed on the London Stock Exchange
and the Formosa tranche will also be listed on the
Taipei Exchange.
(Reporting by Yousef Saba; Editing by Kirsten Donovan and
Raissa Kasolowsky)