Dolphin to raise US$1b through bond

posted on 14/06/2011: 74 views

Abu Dhabi-based Dolphin Energy, in which Occidental Petroleum Corp (Oxy) and Total (Tot) are shareholders, has mandated five banks on a planned bond issue that aims to raise more than US$1 billion (Dh3.7 billion) to refinance existing debt, two people familiar with the situation said yesterday.

A roadshow for the bond issue is planned to kick off by the end of the week, the people, who declined to be named, said.

One banker familiar with the deal said meetings are scheduled to take place in London on Thursday and Friday, Abu Dhabi and Dubai on June 19 and 20 and in the US on June 21 and 22.

"The bonds may be issued in bullet or amortising form or a combination thereof and the ultimate size may vary but will not exceed US$1.93 billion," he added.

Five banks

The five banks mandated by Dolphin Energy, which imports natural gas to the UAE via a pipeline from Qatar, are: BNP Paribas, Royal Bank of Scotland, Societe Generale, The Bank of Tokyo-Mitsubishi, and Abu Dhabi Commercial Bank, the people added. RBS and SocGen couldn't be reached immediately for comment. BNP Paribas, ADCB and Bank of Tokyo-Mitsubishi declined to comment. Dolphin referred inquiries to Mubadala Development Co, which declined to comment.

Abu Dhabi government investment firm Mubadala owns 51 per cent in Dolphin, with Total and Occidental each holding 24.5 per cent stakes.

Dolphin Energy in 2009 raised a total US$4.1 billion to refinance debt, fund the construction of its Taweelah-Fujairah pipeline project, and pay for refinancing-related fees.

The funds were raised via US$1.25 billion bond, US$1.4 billion bank debt and a US$218 million facility insured by Italian export credit agency Sace. Total and Occidental co-lent US$1.2 billion at the time.

364km pipeline

Dolphin in July 2007 started gas deliveries from Qatar's North Field through a 364km pipeline to a receiving terminal at Taweelah in Abu Dhabi, the largest of the UAE.

The company presently pumps about two billion cubic feet a day of gas-equivalent to about 360,000 barrels a day of crude oil-which is sold to customers across the UAE and Oman.

Gas demand in the Gulf states has risen rapidly in recent years amid rising power and industrial requirements driven by strong demographics and aggressive infrastructure plans.

News of Dolphin's plans come at a time when the Dubai government is meeting investors to test credit market sentiment for a dollar-denominated bond. – Gulf News

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