Abu Dhabi's IPIC launches $3.5 bln loan

Abu Dhabi government-owned International Petroleum Investment Company (IPIC) has launched a $3.5 billion syndicated loan to support recent acquisitions, two banking sources close to the deal said.

It is the first major new money loan in the Gulf this year, and is expected to act as a barometer for international banks' appetite for syndicated loans in the region, the sources said.

"I think this will get the market moving... I would expect it to be successful," a senior loans banker at a European institution said. The loan is split between a one-year bridge loan A that will be refinanced by bond issues, and a two-year facility B that is extendable for a further year at lenders' discretion, the sources said.