Abu Dhabi: Mubadala Development Company, the Abu Dhabi government investment firm, has set the terms on a $2 billion (Dh7.34 billion) revolving credit facility it is renewing with a bank consortium, with the new deal involving about 20 lenders, the company's chief financial officer said Sunday.
"We've set the terms, it's [finalisation is] imminently due," Carlos Obaid said on the sidelines of a conference in Abu Dhabi. "We're almost twice oversubscribed," Obaid said, adding that renegotiating the terms of the loan had not been a problem.
The existing $2 billion loan is priced 17.5 basis points over London interbank offered rate, or Libor.
About 20 banks have signed up for the new corporate loan, which Mubadala expects to sign and conclude within the next few days, he added. The new facility totals $2.5 billion, including a $500 million euro-commercial paper, or ECP, backstop facility, Obaid said.
Mubadala earlier this year set up an ECP programme as part of efforts to diversify its funding sources. The programme is rated "Prime-1" by Moody's Investors Service.
Mubadala, which invests strategically on behalf of Abu Dhabi in a range of sectors, had its long-term credit rating cut last month by Moody's Investors Service to "Aa3" from "Aa2". Obaid said at the time that the ratings cut wouldn't have any major impact on the company's financing strategy.
Mubadala was one of the first Gulf companies to approach debt markets earlier this year, when it said it was talking to banks over rescheduling the $2 billion credit facility, after Dubai announced late last year it would seek to delay repayments on $26 billion of debt for its conglomerate Dubai World. Dubai has since announced a restructuring proposal for Dubai World.
