UAE – Mubasher: Abu Dhabi's Mubadala Investment Company signed a $2 billion revolving credit facility to refinance a $1.75 billion revolving loan it got three years ago, Zawya reported on Thursday.
The transaction is a rare one in Gulf debt markets, as borrowers are increasingly issuing bonds in a bid to diversify their funding base to take advantage of favourable conditions across emerging markets.
In 2016, Mubadala, the GCC emirate's strategic investment firm, signed the original loan with a group of 21 international banks.
The new loan, with a five-year maturity, will be provided by a large group of relationship banks, sources told Reuters on Wednesday.
“In line with our prudent liquidity management strategy, Mubadala can confirm that it has signed a new $2 billion revolving credit facility,” a Mubadala spokesperson told Reuters.
The credit facility will be used for general corporate purposes and will replace the $1.75 billion Mubadala Development Company, and legacy IPIC revolving credit facilities.
