Gulf Investment Corp prices $500m bond
Dubai, November 21, 2012
Gulf Investment Corp, a financial institution owned by the six nations of the Gulf Cooperation Council, has priced a $500 million five-year bond, its first dollar deal since 2005.
GIC's transaction priced at 250 basis points over the mid-swap rate, at the tight end of the 250-275 bps guidance. The bond carried a 3.25 percent coupon and had a reoffer price of 99.79 to yield 3.296 percent.
The bond attracted $1 billion of orders from 97 investors, the lead managers said on Wednesday. Middle Eastern accounts received 57 percent of the paper, with European and Asian investors getting 38 percent and 5 percent respectively.
By investor type, banks were given 50 percent of the deal, with fund managers and private banks awarded 14 percent and 17 percent respectively. Twelve percent went to pension funds while 7 percent was placed with supranational institutions.
GIC concluded investor meetings in London on Tuesday. BNP Paribas, Citigroup, National Bank of Abu Dhabi and Standard Chartered arranged the roadshows and the subsequent bond.
Kuwait-based GIC was set up in 1983 to provide financial services to support private sector economic growth in the GCC.
GIC held meetings in Switzerland last month, arranged by BNP Paribas and Royal Bank of Scotland, which led to a 300 million Swiss franc ($319 million) three-year issue - its debut offering in francs.
It is rated Baa2 by Moody's and BBB by Fitch Ratings and has a $2.5 billion bond programme, which the bond is part of.-Reuters