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Mon 21 Mar 2016 01:57 PM

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Abu Dhabi's Aabar signs $4bn loan to refinance debt

Aabar manages a portfolio of investments spanning real estate and aerospace to financial services and energy

Abu Dhabi's Aabar signs $4bn loan to refinance debt
(Image courtesy: www.ipic.ae)

Abu Dhabi's Aabar Investments has signed a 3.6 billion euro ($4.05 billion) loan of five years duration which will be used to replace several of the state fund's existing debts, it said in a statement on Monday.

The transaction was arranged "on tighter terms compared to previous facilities", it said without detailing the loan's pricing.

Nine banks provided cash for the loan: Bank of America-Merrill Lynch, BNP Paribas, HSBC, Intesa Sanpaolo, JP Morgan, National Bank of Abu Dhabi, Natixis, Societe Generale and Sumitomo Mitsui Banking Corp.

A further, limited sell-down of the loan to other banks, known as a syndication, was now in process, the statement added.

Reuters reported last month that Aabar was close to securing the loan, which would repay existing loans including a $2.5 billion facility that was due to mature in April, with pricing of sub-200 basis points over benchmark rates.

Aabar manages a portfolio of investments spanning real estate and aerospace to financial services and energy.

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