Adnoc in talks for loan of up to $5b

dubai — Abu Dhabi oil giant Adnoc is in talks to obtain a syndicated loan worth up to $5 billion, the latest sign that the region’s giant oil companies are increasingly turning to the debt markets to fund expansion.

Two banking sources said on Monday that company’s talks with regional and international banks are focusing on a loan that may total several billion US dollars. A third said it was expected to be in a range of $4 billion to $5 billion.

The loan facility, which would have various maturities of up to five years, is one of a number of fund-raising options being considered by Abu Dhabi National Oil Co. It is also discussing the possibility of issuing a project bond that could be as large as $3 billion, bankers said, declining to be named because of commercial sensitivities.

An Adnoc spokesman told Reuters: “As announced on July 10, Adnoc is expanding its partnership model and creating new partnership and co-investment opportunities across all areas of its value chain.

“Alongside this new partnership model, Adnoc is also taking a more active approach to managing its portfolio of assets and balance sheet to both unlock value and drive growth.

“Furthermore, as per the normal course of its financial planning, Adnoc is also looking at the most effective capital structure for the efficient management of its business.” The planned loan would be Adnoc’s first large borrowing from banks beyond a deal worth up to $3.3 billion with Japanese banks that it signed last year. The project bond would be Adnoc’s first dollar bond. — Reuters