ABU DHABI: Mubadala, the Abu Dhabi investment fund with a mandate to boost the emirate’s local economy, swung to a net profit in 2012, helped by improved margins at some of its core businesses and lower impairments, it said yesterday.
Oil-rich Abu Dhabi, capital of the UAE is investing billions of dollars in industry, tourism and infrastructure locally as well as overseas through state-backed entities such as Mubadala.
However, earlier this month Mubadala signed a $2bn loan refinancing with banks to replace a $2.5bn loan agreed in 2010.
Spreads on Mubadala bonds widened slightly yesterday with the $500m 7.625 percent bond maturing 2019 bid at 128.5 cents to the dollar to yield 2.520, compared with 2.515 on Wednesday.
A $750m 5.5 percent bond maturing 2021 was bid at 117.5 cents to the dollar to yield 3.03 percent, compared with 2.962 percent on Wednesday.
The fund made a profit of Dh455m ($124m) in 2012, compared with a loss of Dh3.2bn in 2011, when it booked heavy impairments on its financial portfolio.
The fund, which has a local joint venture with General Electric and interests in the semiconductor, oil and gas, aerospace and real estate sectors in the region, increased its revenue by 12 percent last year to Dh31.3bn, boosted, it said, by higher semiconductor sales and land sales.
Losses from financial investments fell to 1.43 billion dirhams last year after a loss of 3.03 billion dirhams in 2011, while impairments on the fund’s property portfolio dropped to Dh585.7m from Dh653m.
Mubadala’s total assets stood at Dh202.8bn at the end of the 2012, up from Dh177.1bn a year ago. Reuters
