• Home
• /
• Business

Dolphin Energy issues $1.3b bonds

The $300 million transaction was priced at a 5.34 per cent yield on the back of a 101.25 per cent bond price. The bonds have received an A+ rating from Fitch and an A1 rating from Moody’s, both with stable outlook. This in the second bond issuance by a Abu Dhabi company, last month First Gulf Bank got $1.4 billion in bids for its $500 million Islamic bond.

The yield on Abu Dhabi’s 6.75 per cent bond due April 2019 rose two basis points, or 0.02 of a percentage point, to 3.31 per cent on Wednesday. It has dropped 10 basis points this month.

Dolphin timed its bond to take advantage of lower borrowing costs. Last year, Dolphin delayed a debt sale after yields rose amid investor concern over unrest in the Arab world and Europe’s debt crisis. Since then, borrowing costs have dropped, encouraging Gulf Arab issuers to raise $7.6 bdillion so far in 2012, compared with $926 million in the same period last year, according to data compiled by Bloomberg. “Dolphin is a high-quality issuer and as such ought to always get a good reception globally from investors,” said Mark Watts, head of fixed-income at National Bank of Abu Dhabi’s asset anagement group.

Dolphin Energy chief executive officer, Ahmed Ali Al Sayegh, said, “As a result of strong investor demand, we decided to increase the size by another $300 million.”

“We were able to attract strong demand and price our bonds at the tight end, despite the current volatile markets, ” the chief executive said.

“The capital markets recognize the strength of the business and appreciate our high credit quality and increased transparency,” he said.

The Dolphin Project, produces and processes natural gas from Qatar’s North Field, and transports it by sub-sea export pipeline from Qatar to the UAE, which began in July 2007. The long term customers for Dolphin gas are Abu Dhabi Water & Electricity Company, DUSUP Dubai Supply Authority and Oman Oil Company.

— haseeb@Khaleejtimes.com