June 24, 2020 / 2:04 PM / 22 days ago

CORRECTED-Investors raise US$7.96bn loan for ADNOC pipeline deal

(Corrects headline and story to show investor consortium raised loan, not ADNOC)

By Sandrine Bradley

LONDON, June 24 (LPC) - A consortium of investors has signed a US$7.96bn commercial loan to back a US$10bn 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 US$10bn 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 US$2.04bn will be provided in the form of equity by the consortium. 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. (Editing by Chris Mangham)

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