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57520
Sun, 04/26/2009 - 14:17
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Abu Dhabi's Ipic raising new loan of up to US$5b
London - Abu Dhabi government-owned International Petroleum Investment Company (Ipic) is raising a new loan of up to US$5 billion, banking sources close to the deal said on Thursday according to 'Reuters'.
The loan, which will be co-ordinated by Bank of Tokyo-Mitsubishi UFJ, HSBC and Santander, will be used to finance IPIC's recent acquisitions, a banker close to the deal said.
"The loan does not finance a specific acquisition, it finances IPIC's recent acquisition spree," he added.
The three co-ordinating banks will invite senior banks to join the deal as mandated lead arrangers in the next couple of weeks, sources said.
Any shortfall between the amount raised and Ipic's US$5 billion debt requirement could be met by the Government of Abu Dhabi, another banker said.
"Ipic's debt requirement is up to US$5 billion," a banker close to the deal said. Ipic has made two large recent acquisitions. In March the company increased its stake in Spanish oil company Cepsa to 47 per cent by buying shares from Santander Group and Fenosa in a deal worth around US$4.4 billion.
In April, Canada-based Nova Chemicals Corp shareholders approved Ipic's US$500 million takeover of the raw plastics manufacturer in a deal worth US$2.3 billion including Nova's debt.
The new loan of up to US$5 billion will be Ipic's second loan this year - in February the company signed a US$700 million, three-year deal to back its purchase of a 17.6 per cent stake in Oil Search Ltd. That loan was priced at around 300 basis points over Libor, banking sources said at the time.
The loan, which will be co-ordinated by Bank of Tokyo-Mitsubishi UFJ, HSBC and Santander, will be used to finance IPIC's recent acquisitions, a banker close to the deal said.
"The loan does not finance a specific acquisition, it finances IPIC's recent acquisition spree," he added.
The three co-ordinating banks will invite senior banks to join the deal as mandated lead arrangers in the next couple of weeks, sources said.
Any shortfall between the amount raised and Ipic's US$5 billion debt requirement could be met by the Government of Abu Dhabi, another banker said.
"Ipic's debt requirement is up to US$5 billion," a banker close to the deal said. Ipic has made two large recent acquisitions. In March the company increased its stake in Spanish oil company Cepsa to 47 per cent by buying shares from Santander Group and Fenosa in a deal worth around US$4.4 billion.
In April, Canada-based Nova Chemicals Corp shareholders approved Ipic's US$500 million takeover of the raw plastics manufacturer in a deal worth US$2.3 billion including Nova's debt.
The new loan of up to US$5 billion will be Ipic's second loan this year - in February the company signed a US$700 million, three-year deal to back its purchase of a 17.6 per cent stake in Oil Search Ltd. That loan was priced at around 300 basis points over Libor, banking sources said at the time.
