Abu Dhabi oil giant ADNOC has entered negotiations for syndicated loan worth up to $5 billion, Reuters reports.
The company is negotiating with regional and international banks to obtain the loan, according to Reuters’ sources.
The loan would mature over a period of up to five years and is one of several fund-raising options the firm is considering. ADNOC is also looking at issuing a project bond of up to $3 billion.
“As announced on July 10, A[DNOC] is expanding its partnership model and creating new partnership and co-investment opportunities across all areas of its value chain,” an ADNOC spokesman told Reuters.
“Alongside this new partnership model, A[DNOC] is also taking a more active approach to managing its portfolio of assets and balance sheet to both unlock value and drive growth,” the spokesman noted.
The move indicates that low oil prices are forcing oil companies to turn to debt markets to raise funds for expansion.
In January 2016, the UAE borrowed $3.3 billion in a co-financing deal from Japanese banks, according to Oil Price.