Aabar Investments wins $4bn loan deal

21/03/2016 16:50 AST

Aabar Investments, an Abu Dhabi-based diversified investment company, has signed a ?3.6 billion ($4.056 billion) loan facility with a syndicate of global banks.

The five-year senior unsecured, non-guaranteed facility serves to refinance several of Aabar's pre-existing facilities, and was arranged on tighter terms compared to previous facilities reflecting the company's improved credit profile and its strategic importance.

"This transaction is a strong commitment by the global financial community based on confidence in our business model," said Suhail Al Mazrouei, chairman of Aabar Investments and managing director of International Petroleum Investment Company (IPIC).

"We are partnering with nine of the world's leading financial institutions, based on long-term, mutually-beneficial relationships."

Bank of America Merrill Lynch, BNP Paribas, HSBC, Intesa Sanpaolo, JPMorgan Chase, National Bank of Abu Dhabi (as documentation bank and facility agent), Natixis, Societe Generale, Sumitomo Mitsui Banking Corporation are leading the facility as the mandated lead arrangers and bookrunners. A further limited syndication of the facility is now in the process of being arranged, said a statement.

"The improved conditions achieved by Aabar in this credit facility are a reflection of the market's confidence in our operations and strategy, which is also an endorsement to the support and confidence in our shareholder," said Mohamed Al Mehairi, chief executive officer of Aabar Investments.

"Locking in this long-term facility is important for Aabar as the company moves forward with its strategy of diversified investment in attractive global opportunities. The transaction was led by the finance teams of IPIC and Aabar, who had created an optimal structure to tap available liquidity in the global banking system."

Aabar, which is part of the IPIC Group, invests globally in various sectors including real estate development, financial services, energy, commodities and aerospace?.

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