The 18-month facility will initially carry a margin of 50 basis points over Libor, the two sources, both familiar with the matter, said, but will step up after 12 months, one of them added, declining to say what the new margin would be.
It is understood that a wider group of banks have been invited to participate in the deal, but one banking source said the margin was too tight to be attractive for the bank.
IPIC held investor update meetings earlier in June but insisted that it would only issue another bond in coordination with Abu Dhabi’s debt management office.
IPIC, whose current investments include major stakes in Austrian oil group OMV and Spain’s Cepsa, was last in the market in March when it raised $4 billion in three-tranche euro and sterling-denominated bonds.
Separately, Abu Dhabi is likely to issue an international bond in the next 6 to 12 months, a senior debt management official said on Wednesday.
