FINANCIAL NEWS

Abu Dhabi’s Mubadala proposes changes to USD3.4b-bond clauses

06 Nov 2012

(MENAFN) Abu Dhabi’s state-run investment vehicle Mubadala Development Co has proposed changes to certain contract terms on outstanding bonds worth about USD3.4 billion, Reuters reported.

Mubadala said the main impact of the proposal would be the amendment of terms relating to an event of default to remove reference to principal subsidiaries and principal joint venture companies.

The proposed changes also affect a term which says that the Abu Dhabi fund will not pledge any of its assets in a way which negatively affects other creditors.

The company said the move was aimed at making documentation more consistent.

Bondholders have time to vote till November 28 on the proposals and a meeting of noteholders will be held on November 30.

Mubadala will pay a consent fee to all bondholders who agree to the changes by a November 20 consent deadline.

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