Ipic and Mubadala seek $8bn debt restructure

Abu Dhabi-based oil and gas company International Petroleum Investment Company (Ipic) is looking to move $8.8 billion of debt to sovereign wealth fund Mubadala Development Company (MDC), following the merger of the two state-run companies in 2017.

Mubadala Investment Company (MIC), the renamed investment company following the merger, has sought approval from Ipic’s creditors and bondholders to transfer $6.9 billion of bonds and $1.9 billion of private debt to MDC’s balance sheet.

“The end result will be a more efficient single, rated entity within the group responsible for our capital market funding activities,” said Mubadala.

Rating agency Moody’s said the debt transfer would not affect Mubadala’s rating, which is already based on an assumption of support from the Abu Dhabi government. “[Mubadala’s] liquidity profile will be strengthened given the maturity of Ipic’s investments,” added the agency.

BNP Paribas, Citi, Deutsche Bank, First Abu Dhabi Bank and Merrill Lynch International have all been appointed to work on the proposed transaction.

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