Aabar enters into $1.625bn loan agreement

F1 STAR: Jenson Button, world champion driver for Brawn GP, which Aabar Investments has a stake of. (Getty Images)

Abu Dhabi's Aabar Investments, which owns stakes in Daimler AG and the Brawn GP Formula One team, said it borrowed $1.62bn from local and international lenders in a six-month club loan deal for general corporate purposes.

Aabar shares rose 2.2 percent on the Abu Dhabi exchange, while the general index was near flat.

"The loan could be either for refinancing an existing debt that is maturing or some development has taken place, perhaps increasing its stake in Daimler," an analyst at National Bank of Abu Dhabi told Reuters. The analyst declined to be named for this report.

Aabar told Reuters earlier in November it wanted to increase its 9.1 percent stake in the German carmaker.

Aabar made the statement on Wednesday via the Abu Dhabi Securities Exchange without offering further detail.

Company officials contacted by Reuters declined to comment.

Investment vehicle Aabar is majority owned by the Abu Dhabi government's International Petroleum Investment Company (IPIC).

Since late last year, Aabar has acquired stakes in companies across the world including AIG Private Bank, electric car maker Tesla Motors, Virgin Galactic and Banco Santander.

Last month, Aabar and Daimler bought a 75.1 percent stake in the Brawn GP Formula One team, the latest in its acquisition spree. Aabar also said it is considering raising its equity in Daimler. (Reuters)

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