Aabar's Bonds Drop on ‘Adverse' Audit, Despite Abu Dhabi Backing

Aabar Investment’s bonds, worth 2 billion euros ($2.2 billion), have lost about a quarter of their value this week after an auditor of the Abu Dhabi company gave an “adverse opinion” on its 2018 financial statements, Reuters reported. Aabar was a subsidiary of International Petroleum Investment Co (IPIC), which is now part of Abu Dhabi state fund Mubadala Investment Co. Its convertible Eurobonds due in 2020 and 2022 which, according to a JPMorgan note, were issued with expectation of support from the government of Abu Dhabi, have lost about 25 cents on the dollar each, Eikon Refinitiv data showed. Aabar said in a regulatory disclosure on Aug. 30 that Ernst & Young audited its 2018 financial statements and gave an adverse opinion “due to losses incurred during the financial year, accumulated losses and a deficiency of assets.” Read more