Abu Dhabi's Mubadala sees benchmark bond in 2011

03 Mar, 2011

The investment company would use any bond proceeds for general corporate purposes, said Derek Rozycki, executive director of structured finance and capital markets at Mubadala.

Mubadala has stepped in to support Abu Dhabi firms forced, in the aftermath of the global financial crisis, to restructure large debt piles.

Rozycki declined to comment on whether the state-owned fund sees a need for more restructuring in Abu Dhabi but said the company is not under pressure.

"Businesses not doing well is normal, there are different types of the economic cycle," Rozycki said. "There is no pressure on us, it hasn't weighed on us."

Mubadala provided troubled district cooling firm Tabreed with an extra 3.1 billion dirhams (844.2 million) lifeline to help tackle its massive debt pile. The funds were in addition to a $354 million bailout last March to help Tabreed through its recapitalization process.

In January, Mubadala also provided struggling developer Aldar Properties with $5.2 billion in support, which included buying some of its key assets and subscribing to a bond sale.

Mubadala has stakes in Advanced Micro Devices Inc and Ferrari, as well as General Electric and private equity firm Carlyle. The investment firm is fully-owned by the Abu Dhabi government.

Copyright Reuters, 2011

Read Comments