ADNOC Distribution approves $2.25 bn worth of loans

To refinance existing debts, general corporate purposes
ADNOC Distribution approves $2.25 bn worth of loans

ADNOC Distribution, a subsidiary of the state-owned Abu Dhabi National Oil Company (ADNOC), announced that its board of directors approved loan agreements totaling $2.25 billion to refinance existing debts or for general corporate purposes.

According to a statement issued Thursday, the company agreed to unsecured credit facilities with First Abu Dhabi Bank (FAB), in addition to other unnamed banks.

ADNOC Distribution will receive a $375 million fixed-term loan, as well as a fixed-term facility of slightly more than 4.13 billion dirhams ($1.12 billion) from FAB and other banks.

The company stated that it would take out unsecured revolving loans from parent company ADNOC.

“The completion of financing operations under the fixed-term facility agreement and the renewable facility agreement is subject to meeting the necessary conditions,” the company said in the statement.