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Thu 28 Nov 2013 06:40 PM

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Abu Dhabi's IPIC said to seek $2bn refinancing loan

Banking sources say 12 banks will provide loan to International Petroleum Investment Co

Abu Dhabi's IPIC said to seek $2bn refinancing loan
(Photo for illustrative purposes only)

Abu Dhabi's state-owned fund International Petroleum Investment Co is self-arranging a $2 billion refinancing loan, according to banking sources.

The loan will be split between a $1 billion three-year facility paying a margin of 40 basis points (bps) over LIBOR and a $1 billion five-year facility paying a margin of 50 bps over LIBOR, with both tranches paying utilisation fees on top, one of the bankers said.

The deal, which is expected to be completed as a club loan, will be provided by around 12 banks, the banker added.

IPIC last tapped the international loan market in March 2012 when it signed a $850 million, three-year refinancing loan with mandated lead arrangers BNP Paribas, Bank of America Merrill Lynch, DBS andStandard Chartered. That loan paid all-in pricing of around 100 bps, according to Thomson Reuters LPC data.

The company is rated Aa3 by Moody's and AA by Fitch and S&P.

IPIC was not immediately available for comment.

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