The International Petroleum Investment Company (IPIC) of the United Arab Emirates (UAE) announced Saturday that it has got a syndicated term loan facility of 625 million U.S. dollars to finance its acquisition of 20 percent share of Japan's energy company Cosmo Oil, Emirates News Agency reported.
The loan facility was provided by the National Bank of Abu Dhabi(NBAD) and the Bank of Tokyo-Mitsubishi UFJ (BTMU), according to the report.
The Abu Dhabi-based IPIC signed a strategic partnership with Cosmo Oil last September to acquire the latter's 176,000,000 shares(a 20 percent shareholding) in order to promote its energy business in the Asia Pacific region and the U.S. West Coast as well as to pursue joint project opportunities.
The investment by IPIC in Cosmo Oil represents one of the largest UAE investments in Japan, which accounts for some 40 percent of the UAE oil exports.
Cosmo Oil is one of Japan's leading energy companies with activities across the value chain from exploration and production to refining and marketing to petrochemicals. Its current refining capacity stands at 635,000 barrels per day, representing 13 percent of Japan's total refining capacity.
The partnership with IPIC will enable Cosmo Oil to carry out its mid and long term growth strategy as it plans to upgrade the supply chain system, strengthen exploration and production, develop export sales, upgrade refineries and work closely with energy companies which have close relationships with IPIC.
The acquisition of stake in Cosmo Oil is part of IPIC's investment diversification plans, said Khadem Al Qubaisi, managing director of IPIC.
The partnership with a leading global player such as Cosmo Oil will allow both companies to pursue investment opportunities in the rapidly expanding sector of oil, Qubaisi added.
Wholly owned by the Abu Dhabi government, IPIC focuses on investment in the hydrocarbon sector outside the Emirate of Abu Dhabi, with an investment portfolio valued more than 10 billion dollars.
Source: Xinhua
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