ADNOC expected to sign this week $6 bln loan

Abu Dhabi National Oil Co (ADNOC), the United Arab Emirates oil giant, is expected to sign by the end of this week a $6 billion loan which has received commitments from a group of 13 banks, sources close to the situation said on Sunday.

ADNOC, which manages almost all of the proven oil reserves in the UAE, is raising the financing as part of an overhaul of its capital structure which involves, among other things, additional debt raising exercises and the initial public offering of minority stakes in some of its units. The club loan has been largely oversubscribed, having attracted commitments of $750 million each from a group of 13 banks. Commitments will be scaled down to reach the targeted size of $6 billion size, said the sources.

The group of banks comprises Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, First Abu Dhabi Bank, Goldman Sachs, HSBC, JP Morgan, Mizuho, Societe Generale, Standard Chartered, Sumitomo Mitsui Banking Corporation, and UniCredit, said one source close to the matter.

A spokesman for ADNOC, when asked about the loan, said ADNOC is “taking a more active approach to optimising its capital structure to unlock value, free-up capital, enhance returns and drive smart growth. ADNOC is therefore considering various options with regards to its financing strategy.” (RTRS)