Abu Dhabi's Ipic to hold non-deal investor meetings, not bond

Abu Dhabi's International Petroleum Investment Co (Ipic) said on Sunday it planned to hold non-deal investor meetings and would only issue bonds in coordination with Abu Dhabi's debt management office. Ipic, fully owned by the Abu Dhabi government, hired banks to arrange the meetings in London this week, according to a document seen by Reuters.

"The company is not executing any capital markets transaction," Ipic said in a statement.

"As Ipic has done in the past, any future bond issuance by Ipic will be fully coordinated with the Debt Management Office of the Government of Abu Dhabi."

Abu Dhabi is trying to curtail bond sales by state entities and centralise fundraising through the debt management office in a bid to crackdown on undisciplined issuance.

Ipic, whose current investments include major stakes in Austrian oil group OMV and Spain's Cepsa, was last in the market in March when it raised $4 billion in three-tranche euro and sterling-denominated bonds.

That issue was used to finance Ipic's acquisition of Cepsa, prompting speculation it may be raising capital to pay for another purchase.

On Sunday, Abu Dhabi Commercial Banksaid it plans to sell its 25-per cent stake in Malaysia's RHB, valued at around $1.6bn, to Ipic unit Aabar Investments.

Abu Dhabi-linked firms have led regional bond issuance this year, with investment firm Mubadala and Aabar issuing debt in 2011.

Two sources with knowledge of the matter said Ipic was eyeing a potential bond issue after the investor meetings.

Any issue would have met a receptive audience given global appetite for regional credits, while narrowing spreads offer appealing pricing for borrowers.

Credit default swaps, or the cost to insure sovereign debt, in the UAE have been narrowing in recent weeks with the country seen as a safe haven from the wider regional unrest.

Dubai's government is also on the road this week to meet investors ahead of a potential dollar-bond and has set up a new $5bn framework for issuing future debt.