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Dolphin Energy picks banks for dollar bond

Dubai, June 14, 2011

Abu Dhabi's Dolphin Energy Limited, 51 per cent owned by state fund Mubadala, has picked banks for investor meetings ahead of a potential dollar bond issue, arranging banks said.

A benchmark bond from the energy firm would not exceed $1.93 billion, a document from the lead managers, seen by Reuters, showed. Benchmark is usually understood to be at least $500 million.

The issue is open to institutional US investors. Roadshows kick off on June 16 in London followed by meetings in the UAE and the United States, ending June 22 in New York.

RBS, Abu Dhabi Commercial Bank, BNP Paribas, Mitsubishi UFJ and Societe Generale are arranging the meetings.

France's Total and US Occidental Petroleum each have a 24.5 per cent stake in Dolphin, which in November completed the 244 km Taweelah-Fujairah gas pipeline to provide gas to two power stations in the north of the UAE.

The bond is expected to refinance much of the loan debt taken in a $3 billion financing package in July 2009.

The overall deal consisted of a $1.6 billion bank loan, a $1.25bn bond and a $218 million bank loan supported by the SACE export credit agency.

Having been agreed and signed in the aftermath of the global credit crunch, the loan debt is now regarded as expensive so a bond issue - at a time when rates are at historic lows - will help reduce Dolphin's borrowing costs.-Reuters




Tags: abu dhabi | Dolphin Energy | dollar bond |

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