Morning Commentary: Arab Petroleum bond trades just over par; Abu Dhabi’s oil pipeline notes eyed

By Rebecca Melvin

New York, Oct. 26 – Arab Petroleum Investments Corp.’s new 3.141% Islamic bond was seen trading slightly over par at 100.13 bid, 100.18 offered on Thursday after the multilateral development bank priced $500 million of the five-year notes under Regulation S, according to a market source.

Investors in the region were also watching Abu Dhabi Crude Oil Pipeline LLC, wholly owned by Abu Dhabi National Oil Co., which launched $3.04 billion of senior notes that were expected to price shortly.

The Abu Dhabi pipeline notes were expected to price at par and were multiple times oversubscribed, with order books topping $11 billion, skewed to the 30-year notes, a market source said.

ADCOP channels about 23% of Abu Dhabi’s crude oil exports from Abu Dhabi to Fujairah on the Indian Ocean.

Meanwhile, Celulosa Arauco y Constitucion SA, a Chilean wood pulp company, was expected to price a notes offering shortly.

The company is tendering for capped amounts of three series of outstanding notes, including up to $250 million of its 7¼% notes due 2019, up to $200 million of the 5% notes due 2021 and up to $250 million of its 4¾% notes due 2022. So far investors have tendered $740.52 million of these notes.

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