Oman and Abu Dhabi State-Owned Companies to Issue Debut Bonds

(Bloomberg) --

Omani state energy company OQ SAOC and Abu Dhabi Ports Co. PJSC are set to issue bonds in their first foray into the international fixed-income market.

OQ is looking to raise at least $500 million as the government seeks to leverage some of its hydrocarbon assets to bolster its finances, according to people familiar with the matter. It has hired Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. to work on the seven-year dollar bonds, which may be issued Wednesday, the people said. The initial yield talk is around 5.625%.

Meanwhile, Abu Dhabi Ports is issuing 10-year bonds with Citigroup, First Abu Dhabi Bank PJSC and Standard Chartered Plc working on the deal that’s expected to price around 145 basis points over mid-swaps, other people familiar with the matter said.

Read: Oil Firm OQ Plans Debut Bond as Oman Leverages State Assets

The United Arab Emirates-based firm secured a $1 billion loan from a group of banks, Reuters reported earlier this week. The company’s debt-raising plans follow moves by Abu Dhabi National Energy Co., the emirate’s biggest utility known as Taqa, to potentially sell a stake.

Abu Dhabi Ports and Taqa are both owned by Abu Dhabi sovereign wealth fund ADQ.

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