In mid-April Mubadala, the Abu Dhabi government-owned investment fund, launched a US$1.5bn bond. The placement was equally divided into two tranches; a US$750m five-year bond and a US$750m ten-year bond, paying 180 basis points and 210 basis points over US Treasury bonds respectively.

Mubadala, which is not publicly traded, plans to invest around Dh60bn (US$16.3bn) this year, close to four times the amount spent annually since 2008. The bulk of projected expenditure is earmarked to finance Mubadala's subsidiary, the Advanced Technology Investment Company (ATIC)-the cornerstone of Abu Dhabi's emerging high-tech sector. Funds for Mubadala GE Capital, the Masdar project-a high profile renewable energy venture-several real estate developments and private-public partnerships are also included in the figure. Since its inception in 2002, Mubadala has received Dh61bn from the government. Other sources of the company's funding include cash flow generated internally by the firm and borrowings from third parties.

The issuance was preceded by roadshows in Europe, Asia, the US and the UAE to gauge investors' interest. The demand was estimated at between US$1.5bn and US$4bn, indicating confidence in the company's prospects. The prospectus for the bond contained economic projections for Abu Dhabi and references to the emirate's development blueprint-Economic Vision 2030.

According to the document, Abu Dhabi is forecast to grow at an average annual rate of 7% until 2015 and of 6% between 2015 and 2030. Economic development is intended to be backed by diversification of the economy away from hydrocarbons. A balance between oil and non-oil trade is planned to be achieved by 2028. Mubadala, being the chief vehicle for Abu Dhabi diversification strategy, will play a key role in carrying out Economic Vision 2030.

Shortly after the successful launch of the bond, Mubadala published its annual report for 2010. The company posted a Dh351m (US$96m) overall loss, resulting from investment impairments. Operational results, before impairments, showed a profit of Dh1.1bn, 77% down on 2009, the year when the company turned the corner, after recording a loss of Dh11.8bn in 2008. In spite of the loss in 2010, revenue increased by 22% across diverse sectors, and a significant part of growth materialised in non-oil ventures. Mubadala's oil and gas investments in the past accounted for around 80% of its revenue; this number declined by more than half to 38% in 2010. The company's assets rose by 14% year on year, to Dh101.5bn. Mubadala received a Dh13bn government equity injection in 2010.

The highlights of the 2010 annual report included Emirates Aluminium reaching full production capacity, the launch of Strata, the Al Ain-based aerospace materials production venture, and the first profitable year for Mubadala's healthcare business.

According to Mubadala's chief operating officer, Waleed al-Mokarrab al-Muhairi, the company has been virtually unaffected by the regional unrest even though it owns an oil concession in Libya and is part of a joint venture developing and producing energy in Bahrain. Both these investments are not key parts of the company's energy portfolio.

Mubadala's bond is the second issued by Abu Dhabi this year, following the International Petroleum Investment Corporation's US$43bn sterling- and euro- denominated bonds in March.