ENOC Said to Start $1.5 Billion Loan Syndication in Two WeeksArif Sharif and Sarmad Khan
Emirates National Oil Co., a Dubai government-owned company, will begin syndication of a $1.5 billion loan within the next two weeks as it seeks funds for expansion, according to two bankers with knowledge of the deal.
The company known as ENOC will pay an interest rate of 235 basis points, or 2.35 percentage points, over the London interbank offered rate on the nine-year loan, said the bankers, asking not to be identified because the information isn’t public. Seven banks including Dubai-based Emirates NBD PJSC and Standard Chartered Plc are helping to arrange the facility, they said.
ENOC, a refining and trading company, is seeking mergers and acquisitions abroad, Chief Executive Officer Saeed Khoory said in an interview in February. The decline in oil prices over the past few months may have made some assets attractive, he said. Dragon Oil Plc, a Dubai-based oil explorer active in Turkmenistan, said March 17 ENOC had made an offer to buy 47 percent of the company it didn’t already own.
A spokesman for ENOC referred Bloomberg to a company statement in January that said it was seeking a $1.5 billion long-term loan for general corporate purposes, declining to comment further yesterday.
Abu Dhabi Islamic Bank PJSC, Commercial Bank of Dubai PSC, Dubai Islamic Bank PJSC, Mashreqbank PSC and Noor Bank are also arranging ENOC’s loan, according to the bankers.
Spokesmen for Dubai Islamic Bank, Emirates NBD and Standard Chartered declined to comment, while a spokesman for Commercial Bank of Dubai said he couldn’t immediately comment on the deal. Spokesmen for Abu Dhabi Islamic Bank, Mashreqbank and Noor Bank couldn’t immediately be reached.