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Fri 29 May 2009 04:16 PM

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Abu Dhabi's IPIC launches $3.5bn loan - bankers

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)

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