Abu Dhabi government-owned International Petroleum Investment Company (IPIC) is looking to secure a $1 billion, three-year loan to back its purchase of a 17.6 percent stake in Oil Search Ltd, banking sources close to the deal said on Wednesday.Deutsche Bank is leading the club loan and banks are being invited to commit $150 million to join as bookrunners and mandated lead arrangers. The margin is around 300 basis points over LIBOR, one of the bankers said.
IPIC last November paid A$1.68 billion ($1.1 billion) for Oil Search, which operates all of the oil and gas producing fields in Papua New Guinea and has a 34 percent interest in the PNG LNG Project.
IPIC's last loan was a 825 million euro, six-month bridge loan that it signed in May 2008.
IPIC invests in oil-related projects for the government of Abu Dhabi, capital of the United Arab Emirates, which is the world's fifth-largest oil exporter. (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.
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