Lenders to Abu Dhabi National Energy Co, the state-run utility known as Taqa, plan to start syndicating $3 billion of revolving credits, according to two people familiar with the situation.
Bank of Tokyo-Mitsubishi UFJ Ltd, BNP Paribas, Citigroup, HSBC Holdings, Royal Bank of Scotland Group and Standard Chartered may invite a wider group of banks to join the loan as soon as today, said the people, who declined to be identified because the information is private.
Allan Virtanen, an Amsterdam based spokesman for Taqa, wasn’t immediately able to comment.
The facility is comprised of a $2 billion three year credit line and a $1 billion five year portion.
The deal will help Abu Dhabi based Taqa refinance $3.15 billion of debt due next year, the people said.
Taqa agreed to pay interest of 65 basis points more than the London interbank offered rate on money it draws from the three year credit signed in 2008, according to data compiled by Bloomberg.
A basis point is 0.01 percentage point.
Moody’s Investors Service ranks Taqa’s debt A3.
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