Adnoc is speaking with banks for a commercial loan worth several billion US dollars
The loan with different maturities of up to five years could be in the range of $4bn to $5bn, according to news agency Reuters, which cited unnamed banking sources familiar with the matter. The other financing option being discussed by the state-controlled oil and gas giant is a project bond, which could be as large as $3bn.
The talks are at an initial stage and the company has not appointed banks to lead the planned loan transaction, however, bankers speculated that a mandate could be awarded within the next couple of weeks.
An Adnoc spokesman said that the company has already announced an expansion of its partnership model and creation of 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, the spokesman said in a statement to MEED, adding that 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.
Reports suggest that Adnoc has chosen US-based investment bank Moelis & Co for advisory role on attracting investment and preparation of various units for initial public offerings (IPOs).
Adnocs service stations unit, is among the subsidiaries being considered for a public float the firm expects the fuel distribution business to be valued as high as $14bn.
Adnoc is expected to shortly appoint investment banks for the public float, which likely is likely to take place on the Abu Dhabi Securities Exchange (ADX). Reports suggest that the US-based Goldman Sachs and JP Morgan, local First Abu Dhabi Bank (FAB), and the UKs HSBC are among the lenders pitching for a role on the deal, while Rothschild has already been picked as adviser for the flotation.
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