Mubadala Development Co., an Abu Dhabi sovereign wealth fund, said the remainder of a $2 billion loan made to Eike Batista’s EBX Group Co. will be repaid over four years as he seeks to prevent his companies from collapse.
The unnamed “third party” will repay “progressively” until June 30 2017, according to the wealth fund’s first half report published today. A Mubadala official, who asked not to be identified, confirmed that the information in the financial statement related to Mubadala’s investment in EBX.
Mubadala said in July that it restructured a $2 billion investment in the former billionaire’s holding company after a stock-market selloff pushed down the value of his businesses. Mubadala, which had said that EBX had redeemed a “significant portion” of its original investment, was repaid with a combination of cash and securities, according to today’s report.
The remaining loan is backed by “guarantees and pledges over securities,” according to the wealth fund.
Commodities trader Trafigura and Mubadala said earlier this month they plan to buy a controlling stake in Batista’s iron-ore port for about $400 million as the Brazilian entrepreneur sells off pieces of his commodities and logistics empire.