Abu Dhabi’s Dolphin Energy, majority-owned by state fund Mubadala, raised $1 billion from a 10-year bond sale, mainly to meet its refinancing needs.

The bond, which has been privately placed, was priced at 5.5 per cent, at the tighter end of revised guidance of 5.5 per cent to 5.65 per cent. Initial guidance was given in the 5.75 per cent area. Proceeds from the bond issue will be used to refinance the existing bank debt belonging to the company and to also pay a distribution to Dolphin’s shareholders, the company said in an investor presentation.

The issue, which is set to mature on December 15 2021, is 144a-compliant, meaning it is also open to institutional US investors.

Dolphin Energy, in which France’s Total and Occidental Petroleum  own stakes, completed a series of investor meetings in June but delayed plans to issue to bond. The banks which organised these roadshows are listed as lead managers on the impending deal: Abu Dhabi Commercial Bank, BNP Paribas, Mitsubishi UFJ, Royal Bank of Scotland and Societe Generale.

Dolphin raised around $3 billion in July 2009 to help finance a 244-km gas pipeline between Taweelah and Fujairah to provide gas to two power stations in the north of the UAE. The overall deal consisted of a $1.6 billion bank loan, a $1.25 billion bond and a $218 million bank loan.