Abu Dhabi – Mubasher: Abu Dhabi National Oil Co. (ADNOC) is set to begin syndicating a $6 billion loan soon, news agency Reuters reported late Tuesday, citing sources.
With maturity dates of three and five years, the massive loan is forecast to offer interest rate of around 50 basis points (bps) over the London Interbank Offered Rates (LIBOR) for the five-year tranche and around 35 bps over LIBOR for the three-year tranche, according to the sources, whose names were not revealed.
Among the banks having a leading role in the loan are Bank of Tokyo-Mitsubishi UFJ, First Abu Dhabi Bank (FAB), HSBC, and JPMorgan, they added.
ADNOC’s $6 billion (AED 22.04 billion) loan comes as part of plans to expand its partnership model and improve its capital structure in order to “unlock value, free up capital, and enhance returns.”
“The pricing of the loan has decreased from initial discussions because of significant interest received from banks,” according to Reuters.
”The phased and prudent use of bank and other forms of financing represents an attractive and viable funding option for a more efficient and optimal ADNOC capital structure, whilst also allowing access to new and more diverse pools of liquidity,” the news agency cited a company spokesperson as saying.
