Abu Dhabi’s part-privatized state energy investment firm Taqa is offering five-year and 10-year bonds worth a total $1bn so that it can pay back a $1bn bond that will mature in October 2016. Taqa says the issuance will comprise $500mn of 3.625% senior notes due in June 2021 and $500mn of 4.375% senior notes due in June 2026. The company adds that lower interest rates on the new bonds will help reduce its corporate financing costs.

The five-year bonds are being offered at 262.5 to 275 basis points over the midswap rate, while the spread for the 10-year bonds is 312.5 to 325 basis points, according to Bloomberg, which cited an unnamed person familiar with the deal. The agency says France’s BNP Paribas and Societe Generale, US’s Citigroup, UK’s HSBC, and UAE’s First Gulf Bank and National Bank of Abu Dhabi are managing the bond sale. (CONTINUED - 376 WORDS)