LONDON Jan 25 Abu Dhabi government-owned Mubadala
Development Company is in talks with banks to refinance a $2
billion syndicated loan that matures in April, banking sources
close to the deal said.
The loan will be one of the first for a Gulf-based company
since Dubai shocked world markets on Nov. 25 when it requested a
standstill on $26 billion worth of debt owed by state-owned
conglomerate Dubai World, a flagship of the emirate.
Oil-rich Abu Dhabi, the wealthiest of the seven-member
United Arab Emirates federation, is regarded very differently to
debt-laden Dubai by lenders and the flow of funds is expected to
shift to richer and more creditworthy Gulf economies, the
Mubadala offers comfort to lenders with its 100 percent
government ownership and will be able to call on its close
relationship banking group to agree a new deal, the bankers
"Mubadala is doing the rounds and looking for a refinancing
plus a potential increase...it will be largely self-arranged
with Mubadala dictating pricing," one of the bankers said.
Talks are centred around the issue of pricing which will set
a new benchmark for syndicated loans in the Gulf region, another
The original deal was a $2 billion, three-year club loan
signed in April 2007 via 21 banks. It paid a margin of 17.5
basis points over LIBOR, according to Reuters LPC data.
(Reporting by Christopher Mangham; Editing by Dan Lalor)