Gulf Oil and Gas accountACCOUNT

ENOC Marketing $1.5 Bln Long-Term Underwritten Loan

Source: Reuters 4/9/2015, Location: Middle East

Share |
A $1.5 billion nine-year loan for Dubai's Emirates National Oil Company (ENOC) is being marketed to banks after receiving commitments from seven lenders to fully back the financing, three sources aware of the matter said.

The syndication phase was launched on Wednesday and will allow additional lenders to join in the facility, which ENOC said in January it would raise for general business purposes and which sources told Reuters in February was being backed by seven local and international banks.

Those lenders -- Abu Dhabi Islamic Bank , Commercial Bank of Dubai, Dubai Islamic Bank, Emirates NBD, Mashreq, Noor Bank and Standard Chartered -- have fully underwritten the deal, sharing the commitments equally, the sources said.

This means ENOC will secure the cash regardless of what happens during the marketing period, but having other lenders involved allows underwriting banks to reduce their exposures so they can deploy cash into other transactions.

ENOC is a downstream-focused firm owned by sovereign fund Investment Corporation of Dubai, operates service stations, fuel terminals and oil tankers and has a presence in the Middle East, North Africa and Asia.

A spokesperson for ENOC was not immediately available for comment.

The sources said ENOC will pay 235 basis points over the London interbank offered rate (Libor) for the loan, which will have an amortising structure - meaning the borrower repays parts of the loan throughout the duration, as opposed to just servicing the interest payments.

Banks wishing to join the deal can commit funds in either dollars or dirhams, with the facility structured so that conventional and Islamic lenders can participate.

The company announced a change in chief executive last month, with new appointment Saif Humaid al-Falasi saying the firm was targeting investment in new geographic markets.

ENOC hired a five-person team to work on mergers and acquisitions for the company as it seeks to expand beyond its home emirate, sources told Reuters in February.



Financials and Investment News in United Arab Emirates >>

United Arab Emirates >>  8/14/2018 - Dana Gas PJSC, the Middle East's largest regional private sector natural gas company, has announced that the issue of its new Sukuk has been completed...
United Kingdom >>  8/13/2018 - Petrofac has secured US$300 million of new bank facilities with existing relationship banks. These new committed facilities, which will mature in 2020...

Iran >>  8/6/2018 - Iran plans to implement a new financial rescue package on Monday to try and halt the rialís decline, coinciding with the re-imposition of severe U.S. ...
Iran >>  8/5/2018 - Saudi Arabia has agreed to admit an Iranian diplomat to head an office representing Iranian interests in the kingdom, the official Iranian news agency...

Brazil >>  8/3/2018 - Petrobras reported net income of R$ 17 billion in the first half of 2018. The positive result was mainly influenced by the increase in international o...
Azerbaijan >>  8/1/2018 - The EU Member States agreed on European Commission proposal to invest Ä48.4 million in several key European energy infrastructure projects using funds...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


United Arab Emirates Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 |

More News

 

Oil & Gas Companies in United Arab Emirates >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.