IPIC seals deal for $5bn syndicated loan

Mitsubishi UFJ Financial Group arranges credit for Abu Dhabi based sovereign wealth fund - Nikkei report.
IPIC seals deal for $5bn syndicated loan
LOAN DEAL: Mitsubishi UFJ Financial Group has put together a syndicated loan worth $5 billion for Abu Dhabis IPIC, according to a report in Japan. (AFP)
By AFP
Sun 02 Aug 2009 01:16 PM

Mitsubishi UFJ Financial Group (MUFJ) has put together a syndicated loan worth $5 billion for a sovereign wealth fund in Abu Dhabi, a report said on Sunday.

Bank of Tokyo-Mitsubishi UFJ, part of the MUFJ group, has arranged the multibank credit for International Petroleum Investment Co. (IPIC), the business daily Nikkei reported, without citing sources.

The syndicate also involves 15 other banks, including Santander of Spain, HSBC Holdings Plc. of Britain and Sumitomo Mitsui Banking Corp of Japan, the report said.

Japanese banks are hoping to increase their presence in the Middle East, the Nikkei said, adding that many Middle Eastern sovereign wealth funds need large loans which major US and European banks have grown cautious about providing in the global financial crisis.

IPIC will most likely use the one-year loan to acquire Canada-based Nova Chemicals Corp. and to take a stake in CEPSA, Spain's number two oil company, the Nikkei report said.

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