Ipic signs deal for $700m loan

Abu Dhabi Government-owned International Petroleum Investment Company has signed a $700 million (Dh2.5 billion), three-year loan to back its purchase of a 17.6 per cent stake in Oil Search, banking sources close to the deal said.

The bullet term loan is split between a $450m tranche and a $250m equivalent dirham tranche.

The deal pays a margin of 300 basis points (bps) over Libor, a source said.

Bookrunners are Abu Dhabi Commercial Bank, Calyon, Deutsche Bank, First Gulf Bank and Natixis. Deutsche Bank is documentation agent and First Gulf Bank is facility agent.

Bankers said Loan Pricing Corp (RLPC) in January that Ipic was looking to raise $1bn. Ipic paid A$1.68bn ($1.08bn) for Oil Search last November.

Oil Search operates all of the oil and gas producing fields in Papua New Guinea and has a 34 per cent interest in the PNG LNG Project.