UAE - Mubasher: Mubadala Investment Company has hired a number of banks as it plans to issue three-tranche bonds, comprising of six-year and 10-year conventional bonds as well as 30-year dual-listed Formosa bonds, sources told Reuters.

By issuing these bonds, Mubadala aims to raise between $3 billion and $4 billion to obtain extra liquidity amid the deteriorating conditions of international markets amidst the coronavirus (COVID-19) pandemic.

The Abu Dhabi-based fund has hired Banca IMI, BNP Paribas, BofA Securities, First Abu Dhabi Bank (FAB), HSBC, Natixis, and Societe Generale to call investors and manage the bond issuance.

The company is expected to increase the value of the issuance to $5-6 billion to finance purchasing stakes in companies during 2020, one of the banking sources remarked.

Mubadala spokesman noted: "Our amount of debt is currently relatively conservative, and with a strong credit rating and solid balance sheet, we want to build upon the good liquidity position we have to take advantage of future investment opportunities across the portfolio as they arise." 

It is noteworthy to mention that Mubadala has  $1.5 billion bonds of 10-year notes maturing in November, as shown by the company's official website.