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
0

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 energy secretary meets Saudi counterpart after OPEC cuts

Updated 10 December 2018
0

US energy secretary meets Saudi counterpart after OPEC cuts

RIYADH: Saudi Arabia’s energy minister held talks Monday with US Energy Secretary Rick Perry, after the Kingdom and its allies defied US pressure to cut oil production in a bid to prop up prices.
They discussed the “state of the oil market” and energy cooperation between the two countries during a meeting in eastern Dhahran city, the minister, Khalid Al-Falih, said on Twitter.
Perry tweeted that he discussed the need for “open, free, and fair markets with the Saudis.”
OPEC members and 10 other oil producing nations, including Russia, on Friday agreed to cut output by 1.2 million barrels a day from January in a bid to reverse recent falls in prices.
The decision came even as US President Donald Trump demanded that the cartel boost output in order to push prices down.
But Al-Falih shrugged off the pressure last week, saying “we don’t need permission from anyone to cut” production.
The US “is not in a position to tell us what to do,” he told reporters ahead of Friday’s OPEC meeting in Vienna.
Last week, for the first time in decades, the United States — which is not a member of OPEC — was a net exporter of crude oil and petroleum products.
It was the latest sign of how the shale boom has lifted the US standing on global petroleum markets, prompting talk of “energy dominance” by Trump.
Perry’s visit to Dhahran came as Crown Prince Mohammed bin Salman unveiled state oil giant Aramco’s plan for a new energy megaproject in the area known as the King Salman Energy Park (SPARK).
The energy park is expected to attract an initial investment of $1.6 billion, Aramco said.