ADNOC considering loan of up to $5 bln

Abu Dhabi National Oil Company (ADNOC) is negotiating a loan worth up to USD 5 billion, Reuters cited sources as saying Monday.

The sources said the NOC was in talks with regional and international banks, and placed the value in the range of several billion dollars, with one saying USD 4 billion-5 billion.

According to the report, the loan would have several maturity dates reaching up to five years. Additional options, such as a USD 3-billion project bond, are also being considered.

In recent weeks, ADNOC has been looking at diversifying its fundraising venues as low oil prices have decreased government funding for the NOC. It plans to sell minority stakes in some of its services companies through IPOs on local equity markets starting in the next few months.

Investment is expected from both regional and international – especially Asian – sources. ADNOC has said shares of the group holding will not be sold, but it is looking to form partnerships with institutions including large trading houses, pension funds, private equity investors and infrastructure specialists as well as NOCs and IOCs. The company expects these partners to assist the company with market access, technology and knowledge transfer, and capital.