International Petroleum Investment Company issues inaugural tri-tranche Eur2.5bn and sterling 550m bonds equivalent to $4.4bn

This Regulation S only transaction was the largest ever Euro denominated MENA deal, first ever Euro & Sterling multi-tranche transaction from the MENA region, first MENA benchmark Sterling deal since February 2007, and first Euro denominated MENA corporate transaction since November 2008.

Khadem al Qubaisi, Managing Director of IPIC, said: "The strong interest in IPIC's debut Euro and Sterling issuance clearly demonstrates the confidence and trust of the international capital markets in Abu Dhabi, the Government, and the credit qualities and strategic mandate of IPIC. We are pleased that we have achieved this great success following our inaugural bond issuance in 2010. In line with Abu Dhabi's 2030 economic plan, IPIC, with its 26 years of proven excellence, continues to have a long-term strategic vision in driving the diversification of Abu Dhabi's upstream hydrocarbon industry."

Mr. Al Qubaisi also reinforced IPIC's commitment to a long-term partnership with the capital markets.

With IPIC's Aa3/AA/AA credit ratings from Moodys, S&P and Fitch, highly experienced management, a quality asset base, and strategic role closely aligned to Abu Dhabi's natural economy, the IPIC transaction was extremely well received globally and generated an order book in excess of $12bn equivalent, with approximately 350 investors placing orders, approximately half of which were making a new investment into IPIC bonds.

IPIC priced fixed rate notes of 1.25bn Euro, 5year notes with a coupon of 4.875%, representing a spread of 200bps over 5 year mid-swaps; notes of 1.25bn Euro, 10 year notes with a coupon of 5.875%, representing a spread of 250bps over 10 year mid-swaps; and finally, notes of 550m Sterling, 15 year notes with a coupon of 6.875%, representing a spread of 270bps over Gilts, all at the tight end of guidance. In undertaking this transaction, IPIC accomplished its goal in locking in attractive longer term funding in-line with its previous pricing points in the context of a rising interest rate environment (whilst still historically low).

Proceeds from the issuance will be used towards funding IPIC's voluntary takeover offer for the acquisition of those shares in Compañía Española de Petróleos, S.A. (CEPSA) not already owned by IPIC. IPIC currently holds 47.062% of CEPSA's share capital.

Goldman Sachs acted as sole Global Coordinator and Joint Lead Manager with Banco Santander, BNP Paribas, Credit Agricole, Deutsche Bank, and UniCredit.