By Christopher Mangham
Syndicated loan to support recent buyouts, two banking sources close to the deal say.
Abu Dhabi government-owned International Petroleum Investment Co (IPIC) has launched a $3.5bn syndicated loan to support recent acquisitions, two banking sources close to the deal said.
The loan is split between a one-year bridge loan A that will be refinanced by bond issues, and a two-year facility B that is extendable for a further year at lenders' discretion, the sources said.
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, the sources added.
A limited number of banks are being invited to join the deal as initial mandated lead arrangers. (Reuters)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.