Investors Raise $7.96 Billion Loan for ADNOC Pipeline Deal
LONDON (LPC) — A consortium of investors has signed a $7.96 billion commercial loan to back a $10 billion gas infrastructure deal it has agreed with Abu Dhabi National Oil Company, banking sources said.
The consortium comprises Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Italy’s Snam.
ADNOC said on Tuesday it had signed the $10 billion gas infrastructure deal with the consortium, which will acquire a 49% stake in newly formed subsidiary ADNOC Gas Pipeline Assets. ADNOC will hold the remaining 51%.
The two-year loan supports the investors’ acquisition of the 49% stake.
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.
The remaining $2.04 billion will be provided in the form of equity by the consortium.
The ADNOC gas pipeline assets are valued at $20.7 billion.
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.
Related News
Related News
- Trump Aims to Revive 1,200-Mile Keystone XL Pipeline Despite Major Challenges
- Valero Considers All Options, Including Sale, for California Refineries Amid Regulatory Pressure
- ConocoPhillips Eyes Sale of $1 Billion Permian Assets Amid Marathon Acquisition
- ONEOK Agrees to Sell Interstate Gas Pipelines to DT Midstream for $1.2 Billion
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- U.S. LNG Export Growth Faces Uncertainty as Trump’s Tariff Proposal Looms, Analysts Say
- Tullow Oil on Track to Deliver $600 Million Free Cash Flow Over Next 2 Years
- Energy Transfer Reaches FID on $2.7 Billion, 2.2 Bcf/d Permian Pipeline
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
Comments