Deals of the Year 2011: Aabar Investments PJS unsecured exchangeable bond
|Aabar Investments PJS unsecured exchangeable bond|
|Date||May 24 2011|
|Lead managers||Bank of America Merrill Lynch, Deutsche Bank and Morgan Stanley|
|return to the Middle East & Africa Deals of the Year index|
Another example of Gulf firms tapping alternative financing at a time of tighter global liquidity can be seen in the €1.25 billion exchangeable bond from Aabar Investments PJS in May.
The government of Abu Dhabi owns Aabar indirectly through investment vehicle International Petroleum Investment Company (Ipic). The five-year notes were issued over 21% of Aabar’s 9% stake in German car and truck manufacturer Daimler.
"Sovereign wealth funds haven’t traditionally used the equity-linked market," says Bertrand Valet, part of the sovereign wealth funds group covering Aabar at Bank of America Merrill Lynch – one of the bookrunners.
"Aabar has financed stakes through the private market [often using] non-recourse loans backed by derivatives.