Natixis sees more deals coming from Gulf states monetising oil assets | Reuters
Natixis expects oil-rich Gulf states to accelerate privatisations, including by extracting revenue from oil assets, with Saudi Arabia and possibly Oman as likely candidates for similar deals next year, the French bank’s regional head said.
Lower oil prices as well as output cuts after the coronavirus crisis curbed demand for crude have weighed on Middle East oil exporters this year, leading them to explore new financing sources to cover wider funding needs.
Abu Dhabi’s oil giant, Abu Dhabi National Oil Company (ADNOC) raised $10 billion this year by selling a stake in its gas pipeline assets to a consortium of investors under a long-term lease agreement. Those investors raised debt through a bridge loan and bonds to back the acquisition.
“Finally clients are moving away from long-term project financing and moving to hard mini-perm loans with a take-out from project bonds which is proving extremely successful because it attracts a wider pool of liquidity,” said Barbara Riccardi, regional head for the Middle East corporate and investment banking business.
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