Mubadala’s $1bn sukuk order book oversubscribed five times

Abu Dhabi sovereign wealth fund Mubadala has sold $1 billion in 10-year US dollar-denominated Islamic bonds, or sukuk, in its first debt sale of the year, news service IFR said on Wednesday.

Acting through the Mamoura Diversified Global Holding debt vehicle, Mubadala priced the bonds at 60 basis points (bps) over US treasuries, narrower than the 95 bps guidance given earlier in the day after receiving more than $4.75 billion in orders, IFR said.

The wealth fund last raised AED1 billion ($272.3 million) from the sale of a 5-year sukuk in October.

Mubadala this month reported a 9.1 percent jump in assets under management to 1.2 trillion dirhams driven by investments in sectors such as technology, manufacturing and private credit.

It is the second largest state investment fund in Abu Dhabi, the oil-rich capital of the UAE, behind the Abu Dhabi Investment Authority (ADIA). Together with smaller peer ADQ, the three funds manage around $1.7 trillion in assets.

There has been a flurry of bond sales from the Gulf, with issuers braving the markets despite recent turmoil set off by US president Donald Trump‘s tariffs.

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Saudi oil giant Aramco raised $5 billion from a bond sale on Tuesday and the kingdom’s sovereign wealth fund PIF sold $1.25 billion in sukuk earlier this month.

Abu Dhabi Commercial Bank, First Abu Dhabi Bank, HSBC, JPMorgan and Mizuho are joint global coordinators for Mubadala’s sukuk sale.

Abu Dhabi Islamic Bank, Barclays and Credit Agricole are acting as bookrunners and joint lead managers, IFR said.

Emirates NBD Capital and ICBC are passive bookrunners.