Abu Dhabi - Arabstoday
Abu Dhabi-based International Petroleum Investment Company (Ipic) said yesterday it has repaid two loans amounting to $3.75 billion (Dh13.7 billion) well in advance of their respective 2013 maturities. The loans, which were taken in 2010, were prepaid on November 21, Ipic said in a statement. \"Our issuance and subsequent prepayments of our facilities clearly demonstrate that Ipic is prudently managing its liabilities,\" said Khadem Al Qubaisi, managing director. \"It looks to be more of a strategic issue that gives them the ability to further tap into the debt market if they require,\" Marwan Shurrab, vice-president at Dubai-based Gulfmena Investments, told Gulf News. Ipic recently issued $3.75 billion in notes from the Debt Capital Markets (DCM) which it said it would use to refinance debt. The company has previously utilised the capital markets as one of the many means to enhance its maturity profile and its recent exercise included three unique tranches: a 5.5-year, 3.75 per cent, $1.5 billion due in 2017, a 10.5-year, 5.5 per cent, $1.5 billion due in 2022, and a 30-year 6.875 per cent, $750 million due in 2041. \"Our actions reinforce Abu Dhabi\'s credit strength both from a current and a future, 30-year, perspective,\" Al Qubaisi added. Middle Eastern oil producers fund investment companies like Ipic to help diversify their revenue beyond income from oil sales. Ipic owns Spanish refiner Compania Espanola de Petroleos, is the second-largest holder behind the Austria government in oil and gas producer OMV AG and owns stakes in petrochemical producers. Its Aabar Investments PJSC unit holds stakes in non-oil related companies like Daimler. Ipic, established in 1984, is a wholly-owned government of Abu Dhabi company with a focus on investments in international energy and energy-related industries.