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Mubadala weighs debt issuance, plans to invest in Saudi Aramco

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Sunday 20, October 2019 BY Kuda Muzoriwa

The Gulf region has seen a flurry of international debt issuance as governments and companies take advantage of low global rates to attract yield-seeking investors and raise debt cheaply.

The Group Chief Executive of Abu Dhabi’s Mubadala Investment Company said that the state investor is weighing debt issuance plans amid attractive market conditions and could invest in oil giant Saudi Aramco's planned initial public offering (IPO).

Khaldoon Khalifa al Mubarak, the Group Chief Executive of Mubadala added the sovereign wealth fund exited its investment in USchipmaker Advanced Micro Devices in September 2019 after 12 years, having made $4.25 billion on its initial investment of $770 million.

Saudi Aramco postponed plans to float a one-two per cent stake on Tadawul before a possible international listing, launching an initiative that is central to Crown Prince Mohammed bin Salman's economic diversification drive.

Mubarak also said that Mubadala, which has assets under management of $229 billion, is considering participating in Japanese group SoftBank's Vision Fund 2, but the company has not made a final decision.

The sovereign wealth fund is also considering to list Emirates Global Aluminium (EGA) but Mubarak cautioned that this is not the best time for an exit from EGA given a correction in aluminium prices, reported Reuters.

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