DUBAI: Abu Dhabi National Oil Co (ADNOC) plans to raise a $3 billion syndicated loan with the participation of Japan's export credit agency, Japan Bank for International Cooperation, according to a source close to the matter.
The loan would be the latest of a number of large funding exercises carried out by the Abu Dhabi oil giant over the past few months.
ADNOC has chosen HSBC, Mizuho and Sumitomo Mitsui Banking Corp to arrange the planned debt facility, which is expected to have a five-year maturity, said the source.
The loan would be the fifth facility that the oil company obtains with the participation of JBIC after it raised similar amounts of money in 2007, 2010, 2013 and 2016.
Such loans aim to help Japanese companies secure oil supplies from Abu Dhabi, as the proceeds are generally used as a form of advance payment to ADNOC for crude oil sales to Japanese oil firms.
ADNOC tapped the debt capital markets extensively last year, through a mammoth $6 billion club loan and a $3 billion bond which was issued by one of its subsidiaries.
The company also raised $851 million through an initial public offer of shares in ADNOC Distribution, its retail fuel subsidiary, which went public in December.
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