Dubai's GGICO picks banks for senior notes offer

UAE conglomerate Gulf General Investments Company (GGICO) has mandated three banks to lead a benchmark-sized senior notes offering, denominated in US dollars, market sources said on Monday.

HSBC, Standard Chartered and Deutsche Bank have been picked as the joint lead managers and bookrunners for the proposed issue, sources familiar with the matter said.

Benchmark-sized is typically $500 million.

GGICO, headquartered in Dubai since 2001, will begin an investor roadshow for the offering on November 2 in Asia, Europe and the Middle East, according to a statement sent by lead banks to investors and seen by Reuters.

The notes will be guaranteed by two GGICO subsidiaries - Emirates National Lube Oil Company Limited and Gulf Prefab Houses Factory LLC - and funds will be used, in part, to refinance and reduce the company's existing short-term debt.

"Together with the issuer, these subsidiaries represent the majority of the revenues, tangible assets and cash flows of the group," Moody's, which rated the proposed notes B1, said in a statement on Monday.

Moody's said the rating outlook is "negative".

The conglomerate has operations in the real estate, industrial and manufacturing sector as well as an investment portfolio.

Shares in GGICO were trading 5 per cent higher at 0742 GMT.