ADNOC raises $7.96 billion loan for pipeline deal

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LONDON – Abu Dhabi National Oil Company has agreed a US$7.96bn commercial loan to back its US$10bn gas infrastructure deal with a consortium of investors, banking sources said.

The two-year loan supports the investors’ acquisition of a 49% stake in newly formed subsidiary ADNOC Gas Pipeline Assets, while ADNOC will hold the remaining 51%.

SMBC and First Abu Dhabi Bank are senior mandated lead arrangers and bookrunners on the loan, which includes two six month extension options at the borrower’s discretion.

 

Abu Dhabi Commercial Bank, Santander, BNP Paribas, HSBC, Mizuho, MUFG and Standard Chartered are senior mandated lead arrangers.

Citi, Credit Agricole, Natixis, Societe Generale, Emirates NBD and Samba are mandated lead arrangers, with CaixaBank and DBS Bank as lead arrangers, the bankers said.

ADNOC did not immediately respond to a request for comment.

 

The remaining US$2.04bn will be provided in the form of equity by a consortium comprising Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Italy’s Snam. They will invest in select ADNOC gas pipeline assets valued at US$20.7bn.

Under the gas infrastructure deal, 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.

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