We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 25 Nov 2009 09:27 AM

Font Size

- Aa +

Aabar enters into $1.625bn loan agreement

UPDATE 1: Abu Dhabi firm borrows six-month loan for general commercial purposes.

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)

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.