Abu Dhabi’s Mubadala in talks with banks to refinance loan — sources

Mubadala issued a new $800 million 10-year bond last week after repurchasing some of its shorter-dated debt. (Reuters)
Updated 05 November 2018
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Abu Dhabi’s Mubadala in talks with banks to refinance loan — sources

  • The state investment fund signed the original loan in 2016 with a group of 21 international banks
  • A revolving loan is one that can be drawn, repaid and drawn again during the agreed lending period

DUBAI: Abu Dhabi’s Mubadala is in talks with banks to refinance an existing $1.75 billion revolving loan due in May next year, three sources familiar with the matter said.
The state investment fund signed the original loan in 2016 with a group of 21 international banks. A revolving loan is one that can be drawn, repaid and drawn again during the agreed lending period.
“Mubadala has maintained revolving credit facilities since 2006 as part of our strategy to achieve a diversified funding base for the Group. Our current revolving credit facility matures in 2019, and we are planning to renew with our core relationship banks,” said a spokesman for the state fund.
Mubadala, which Abu Dhabi merged with International Petroleum Investment Co. (IPIC) last year, has recently worked to reorganize its debt to adjust for that deal.
The new loan could be increased to include IPIC’s debt requirements, said one source close to the deal. IPIC has a $1 billion revolving credit facility due in December this year, according to Refinitiv data.
IPIC last month asked bondholders to agree to Mubadala Investment Company — the merged entity — becoming guarantor of IPIC’s existing bonds.
“The end result will be a more efficient single, rated entity within the group responsible for our capital market funding activities,” Mubadala said in a statement at the time.
Mubadala issued a new $800 million 10-year bond last week after repurchasing some of its shorter-dated debt.


US-Saudi business council reports $13bn in contracts

Updated 24 May 2019
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US-Saudi business council reports $13bn in contracts

  • Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said

LONDON: The value of joint Saudi-US contracts rose to $13 billion in the first quarter of 2019, according to a business council report.

That marked the highest value of awarded contracts since the first quarter of 2015, the US-Saudi Arabian Business Council said.

The value of contracts awarded during the first quarter amounted to about half of the total value in all of last year, it added.

The contracts “included many vital projects, notably in the oil, gas, water and transport sectors,” Abdallah Jum’ah, the co-chair of the council, was reported as saying by Asharq Al-Awsat.

Energy was the top sector, with $3.1 billion of the value of contracts awarded, with many struck by Saudi Aramco. 

Improved oil prices, combined with a government focus on spending, contributed to the rise, the council said.

The construction sector also looks set for a recovery after many projects were put on hold due to the oil-price crash.

“If the pace of awarding construction contracts witnessed during the first quarter of 2019 continues for the rest of the year, the index of awarding construction contracts may return to the range we witnessed before the canceling and postponing of mega projects due to lower oil revenue,” the council said.