International Petroleum Investment Company (Ipic), an Abu Dhabi-based company, said National Bank of Abu Dhabi (NBAD) and The Bank of Tokyo-Mitsubishi UFJ have concluded a ¥67.5 billion (Dh2.3 billion) syndicated term loan facility to finance the acquisition of a 20 per cent shareholding in Cosmo Oil Company.
Both the banks acted as mandated lead arrangers.
NBAD acted as facility agent and BTMU as documentation bank.
Cosmo Oil is a leading Japanese oil refinery and sales conglomerate, listed on the Tokyo Stock Exchange.
Ipic signed a strategic partnership with it last year to acquire 20 per cent stake in order to promote its energy business in the Asia Pacific region and the West Coast and pursue opportunities.
The deal will enable Cosmo Oil to carry out its mid- and long-term growth strategy as it plans to upgrade the supply chain system, strengthen exploration and production, develop export sales, upgrade refineries and work closely with energy companies, which have close ties with Ipic.
Khadem Al Qubaisi, Managing Director of Ipic, said: "We are extremely pleased with the professional approach of the Corporate Banking Group of National Bank of Abu Dhabi and the Bank of Tokyo-Mitsubishi, while handling this deal, a matter which reflects their strong track record and long experience in deals of this nature," he added.
Al Qubaisi said that this acquisition forms part of Ipic's investment diversification plans. Akram Mark Yassin, Senior General Manager of NBAD's Corporate and Investment Banking Division said: "NBAD is proud to play a significant role in financing the expansion plans of Ipic especially this acquisition deal as it caters to the high demand in the energy sector and underpins the UAE's company's presence worldwide. (The deal) reflects NBAD's strong relationships and cooperation with leading companies such as Ipic. We appreciate our business partners who are eager to strengthen the development of the UAE," he said.
Abdulla bin Khalaf Al Otaiba, Head of Corporate Banking Group, said the bank's outstanding loans for the energy sector increased to Dh8.3bn by the end of 2007 compared to Dh5.5bn in 2006. (Wam)