Mubadala, the state-owned investment vehicle of the Abu Dhabi government, will soon launch its first corporate bond sale–the latest sign that government companies are returning to the debt markets.  The fund plans a series of meetings with investors in Europe and the U.S., according to a report circulated among bankers at Citigroup, Goldman Sachs and the Royal Bank of Scotland, who have been hired to arrange meetings.

The news comes some three weeks after Abu Dhabi successfully issued a $3bn bond, its first in 21 months and part of a larger $10bn issuance, which was more than twice oversubscribed.  Maturities ranged between five and 10 years.  Not long after, Qatar followed with its own $3bn issue.  Moody’s rates Mubadala, the Abu Dhabi National Energy Company (Taqa) and the Tourism Development and Investment Company (TDIC) at “AA2”, the same level as their sovereign owner.

Mubadala’ sale will be part of a larger medium-term note program that will permit later bonds issues without further delay.  Moreover, the sale represents the first issuance of corporate debt in the Gulf since last summer, when Taqa issued its last bond.  Taqa has about US$7 billion (Dh25.71bn) in outstanding bonds.

In a further sign that local companies are returning to debt markets, Sorouh Real Estate, Abu Dhabi’s second-biggest property developer by market value, announced today that it planned to raise Dh2bn through syndicated loans.