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68438
Tue, 06/30/2009 - 15:29
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https://oananews.org//node/68438
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Ipic signs increased syndicated loan of US$5bn
Abu Dhabi, June 30, 2009 (WAM) - Abu Dhabi Government-owned International Petroleum Investment Company (Ipic) has signed a US$5 billion (Dh18.35bn) syndicated loan, increased from a launch amount of US$3.5bn, banking sources close to the deal said yesterday according to a report in Emirates Business.
Co-ordinating bookrunners Bank of Tokyo-Mitsubishi UFJ, HSBC and Santander invited banks to join the deal with commitments of US$400 million and despite the increased final amount, lenders have been scaled back by around 30 per cent, the sources said.
The loan, which will be used to finance Ipic's recent acquisitions, as well as for general corporate purposes, was launched in May.
It is the first major new money loan in the Gulf this year and its success bodes well for international banks' appetite for sovereign corporate loans in the region, bankers said.
The loan is split between a one-year bridge loan A that will later be refinanced by a bond, and a two-year facility B that is extendable for one year at the lenders' discretion. The margin on the A loan is 250 basis points (bps) over Libor for the first six months, rising to 350 bps for the next three months and 400 bps thereafter. The margin on the B loan is 350 bps.
At the same time, National Bank of Abu Dhabi has been arranging a separate US$1.2bn-equivalent dirham deal for Ipic with local banks, which will also be used for acquisition purposes. The margin on that deal is 250 bps.
Proceeds of the US$5bn loan backs Ipic's US$500m takeover of Canada-based raw plastics manufacturer Nova Chemicals Corp, which was approved by shareholders in April, in a deal worth US$2.3bn including Nova's debt. The loan also funds the borrower's increased stake in Spanish oil company Cepsa. Ipic raised its stake in March to 47 per cent by buying shares from Santander Group and Fenosa in a deal worth around US$4.4bn.
Ipic invests in oil-related projects for the Government of Abu Dhabi, the world's third-largest oil exporter. In April, Ipic was assigned an "AA" rating by Standard and Poor's and by Fitch, and a "Aa2" rating by Moody's.
Co-ordinating bookrunners Bank of Tokyo-Mitsubishi UFJ, HSBC and Santander invited banks to join the deal with commitments of US$400 million and despite the increased final amount, lenders have been scaled back by around 30 per cent, the sources said.
The loan, which will be used to finance Ipic's recent acquisitions, as well as for general corporate purposes, was launched in May.
It is the first major new money loan in the Gulf this year and its success bodes well for international banks' appetite for sovereign corporate loans in the region, bankers said.
The loan is split between a one-year bridge loan A that will later be refinanced by a bond, and a two-year facility B that is extendable for one year at the lenders' discretion. The margin on the A loan is 250 basis points (bps) over Libor for the first six months, rising to 350 bps for the next three months and 400 bps thereafter. The margin on the B loan is 350 bps.
At the same time, National Bank of Abu Dhabi has been arranging a separate US$1.2bn-equivalent dirham deal for Ipic with local banks, which will also be used for acquisition purposes. The margin on that deal is 250 bps.
Proceeds of the US$5bn loan backs Ipic's US$500m takeover of Canada-based raw plastics manufacturer Nova Chemicals Corp, which was approved by shareholders in April, in a deal worth US$2.3bn including Nova's debt. The loan also funds the borrower's increased stake in Spanish oil company Cepsa. Ipic raised its stake in March to 47 per cent by buying shares from Santander Group and Fenosa in a deal worth around US$4.4bn.
Ipic invests in oil-related projects for the Government of Abu Dhabi, the world's third-largest oil exporter. In April, Ipic was assigned an "AA" rating by Standard and Poor's and by Fitch, and a "Aa2" rating by Moody's.
