x Abu Dhabi, UAEFriday 19 January 2018

Abu Dhabi bonds sale delayed over Greek crisis

Greece's debt crisis has prompted Dolphin Energy to put on hold plans to sell bonds.

Dolphin Energy has delayed plans to sell bonds because of market volatility caused by the debt crisis in Greece.

The Abu Dhabi energy producer was expected to announce the pricing after hiring banks to hold investor meetings last week.

But the firm has decided to wait until after the resolution of Greece's latest austerity measures, when pricing is expected to improve, according to a person familiar with the matter.

"Dolphin Energy will now be actively monitoring the market over the coming days and will release terms on its bond issue in an appropriate window of execution," said a Dolphin spokesman.

"The transaction may price in the very near future."

Dolphin Energy, a gas pipeline company owned by Mubadala Development, a strategic investment company owned by the Abu Dhabi Government, was anticipated to raise as much as US$1.93 billion (Dh7.1bn) to refinance existing debt.

The firm is among several local companies considering entering debt markets for the first time since unrest in parts of the region.

The Dubai retailer Majid Al Futtaim held investor roadshows this week, Reuters reported.

Abu Dhabi's Tourism Development and Investment Company is also said to be planning to raise about $1bn.

Greece's problems have prompted other global companies to put on hold plans to tap debt markets, say analysts.

"Dolphin Energy is not the only issuer who have decided at the end of the roadshow not to come to the market at the moment," said Spencer Maclean, the head of European syndicate at Standard Chartered. "When you speak to investors out there they're saying it would be wrong to issue bonds into the market because of the uncertainty of Greece and it by no means has a negative impact on issuers wanting to access the markets as soon as next week."

The Greek parliament is due to vote today and tomorrow on a €28bn (Dh146.63bn) austerity package and implementation law.

Agreement is needed for the country to secure the latest €12bn tranche from a €110bn bailout loan from the IMF and EU.

Sunday is the deadline set by the EU to sign off the latest payment.