Mubadala Sells $1 Billion in Sukuk Amid Strong Investor Demand
Strong Demand Pushes Mubadala to Tighten Pricing
Mubadala, Abu Dhabi’s second-largest sovereign wealth fund, successfully raised $1 billion through a 10-year sukuk issuance, tapping into robust global investor demand. The dollar-denominated Islamic bonds attracted orders exceeding $4.75 billion, reflecting strong appetite for high-quality Gulf assets. Initially priced at 95 basis points over U.S. Treasuries, Mubadala tightened the final pricing to 60 bps due to oversubscription and favorable market conditions. This marks the fund’s first debt issuance of 2025 and underscores its solid credit standing.
Mamoura Diversified Vehicle Facilitates the Issuance
The sukuk was issued via Mamoura Diversified Global Holding, Mubadala’s dedicated issuing entity.
This structure enables Mubadala to efficiently access international debt markets while ensuring transparency and regulatory compliance. The deal follows a successful 1 billion dirham sukuk in October 2024 and strengthens Mubadala’s funding diversification strategy.
Leading Banks Coordinate Mubadala’s Successful Sukuk Deal
A consortium of major banks coordinated the issuance, including Abu Dhabi Commercial Bank, First Abu Dhabi Bank, HSBC, JPMorgan, and Mizuho. Additional support came from ADIB, Barclays, Credit Agricole, Emirates NBD Capital, and ICBC, showcasing wide institutional backing. The tight pricing signals strong confidence in Mubadala’s financial health and investment strategy.
Mubadala Assets Jump on Strategic Investments
Mubadala reported a 9.1% increase in assets under management, totaling 1.2 trillion dirhams, driven by strategic global investments. Focus areas include technology, energy, healthcare, private equity, and manufacturing, reinforcing Mubadala’s role as a key global investor. The fund’s diversified portfolio and disciplined approach continue to attract long-term partners and sustainable capital flows.
Gulf Bond Activity Ramps Up in 2025
The Gulf region’s bond markets remain active, with sovereign and quasi-sovereign entities issuing at attractive terms. Earlier, Saudi Aramco raised $5 billion in bonds, while PIF sold $1.25 billion in sukuk.
Mubadala’s issuance highlights continued global interest in Sharia-compliant instruments and regional economic resilience.