State-run Abu Dhabi National Energy Co (TAQA) Monday sold $1.5 billion in bonds maturing in five and 10 years to refinance upcoming debt. The company issued $750 million in five-year bonds paying a premium of 330 basis points over comparable US Treasuries, and an equal amount of 10-year paper at a spread of 390 basis points over Treasuries, Thomson Reuters' IFR reported. In a sign of strong investor demand, the pricing came at the tighter range of a downwardly revised guidance of 335 basis points and 400 basis points for the bonds maturing in five and 10 years, respectively. The five-year tranche had a reoffer price of 99.5020 and a coupon of 4.125 percent. The 10-year tranche had a reoffer price of 99.5150 and a coupon of 5.875 percent. TAQA, which is 75 percent owned by the government of Abu Dhabi, last month said it would buy back a $1.5 billion bond maturing October 2012 and enlisted four banks to sell new debt. “To me it is sensible what issuers are doing. They are taking advantage of a window that is there, created by some optimism regarding the European debt situation,” said Luz Padilla, emerging markets fixed income fund portfolio manager at Los Angeles-based DoubleLine. “They offered a decent spread concession and that is enticing people before year end.”
