Adnoc to raise $3bn credit facility with Japanese financier

10 January 2018
The loan would be the latest of a number of large funding exercises carried out by the UAE oil giant over the past few months

Abu Dhabi National Oil Company (Adnoc) plans to raise a $3bn syndicated loan with the participation of Japan's export credit agency, the Japan Bank for International Cooperation (JBIC).

Adnoc has chosen HSBC, Mizuho and Sumitomo Mitsui Banking Corporation to arrange the planned debt facility, which is expected to have a five-year maturity, Reuters has reported quoting a source.

The loan would be the latest of a number of large funding exercises carried out by the UAE oil giant over the past few months.  It would be the fifth facility that the oil company obtains with the participation of JBIC after it raised similar amounts of money in 2007, 2010, 2013 and 2016.

Such loans aim to help Japanese companies secure oil imports from Abu Dhabi, as the proceeds are generally used as a form of advance payment to Adnoc for crude oil sales to Japanese oil firms.

Adnoc tapped the debt capital markets extensively last year, with a $6bn club loan and a $3bn bond which was issued by one of its subsidiaries.

The company also raised $851m through an initial public offer of shares in Adnoc Distribution, its retail fuel subsidiary, which went public in December.

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