Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

ADNOC infrastructure deal backed by $8 billion bridge financing - sources

06/23/2020 | 09:19am EST

By Davide Barbuscia

A consortium of international investors obtained an $8 billion bridge loan provided by 17 banks for a gas infrastructure deal Abu Dhabi National Oil Company (ADNOC) announced on Tuesday, sources said.

ADNOC said earlier it had signed a $10 billion deal with investors including Global Infrastructure Partners, Brookfield Asset Management, Singapore's sovereign wealth fund GIC, Ontario Teachers' Pension Plan Board, NH Investment & Securities and Italy's Snam.

The investors will acquire a 49% stake in ADNOC Gas Pipeline Assets, a newly formed subsidiary of ADNOC with lease rights to 38 pipelines, with ADNOC holding the remaining 51% majority stake, the company said. The pipeline assets were valued at $20.7 billion.

The acquisition was backed by an $8 billion bridge loan provided by 17 banks, said three sources familiar with the matter.

The bank group includes Abu Dhabi Commercial Bank, BNP Paribas, Credit Agricole, Emirates NBD, First Abu Dhabi Bank (FAB), HSBC, Japan's MUFG, Societe Generale, and Standard Chartered.

The financing, which received commitments of almost $14 billion, has a duration of two years and two six-month extension options. The group of investors plans to replace the loan with a bond issuance at or before its maturity, the sources said.

Standard Chartered said in a statement on Tuesday that it worked as senior mandated lead arranger for the financing of the acquisition, without disclosing details of the loan terms.

Emirates NBD, FAB, MUFG, and Societe Generale declined to comment while the other banks did not immediately respond to comment requests. ADNOC declined to comment.

ADNOC will lease its ownership of the pipeline assets to ADNOC Gas Pipelines for 20 years in return for a volume-based tariff. The new subsidiary will distribute 100% of free cash to the investors as quarterly dividends.

(Additional reporting by Saeed Azhar; editing by Emelia Sithole-Matarise)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ABU DHABI COMMERCIAL BANK 3.26% 6.66 End-of-day quote.7.42%
BNP PARIBAS -1.43% 44.185 Real-time Quote.3.94%
BROOKFIELD ASSET MANAGEMENT INC. -1.60% 49.12 Delayed Quote.-6.27%
CRÉDIT AGRICOLE SA -2.04% 10.07 Real-time Quote.-0.39%
EMIRATES NBD BANK -0.87% 11.45 End-of-day quote.11.17%
FIRST ABU DHABI BANK P.J.S.C. -0.79% 14.98 End-of-day quote.16.12%
HSBC HOLDINGS PLC 1.96% 410.9 Delayed Quote.6.37%
LONDON BRENT OIL 2.17% 55.96 Delayed Quote.6.15%
SNAM S.P.A. -0.79% 4.411 Delayed Quote.-3.35%
SOCIÉTÉ GÉNÉRALE -2.14% 17.022 Real-time Quote.2.22%
STANDARD CHARTERED PLC -2.99% 476.2 Delayed Quote.5.37%
WTI 1.34% 53.011 Delayed Quote.8.19%
Latest news "Economy & Forex"
10:59aItaly's government on course to survive Senate confidence vote
RE
10:56aLogitech CEO wants to stay as long as he can at company
RE
10:56aLogitech says company can grow after COVID-19 boom
RE
10:55aEPIDEMICS LEAD WORLD'S BIGGEST SHORT-TERM RISKS : World Economic Forum
RE
10:52aSupermarket chain Aldi to pay U.S. workers who get COVID-19 vaccination
RE
10:50aOPEC "cautiously optimistic" oil market will recover in 2021
RE
10:49aStellantis sees 80% of merger savings within four years
RE
10:49aTrump fraud claims open Republican rift in Texas and other red states
RE
10:49aSterling slips against euro, analysts see gains
RE
10:47a"Act big" on stimulus, Biden's Treasury nominee Yellen to tell lawmakers
RE
Latest news "Economy & Forex"