By: AGBI

Abu Dhabi National Oil Company (Adnoc) reportedly plans to raise multi-billion-dollar loans to fund its proposed $19 billion acquisition of Australian oil producer Santos.

Adnoc is seeking to secure more than $10 billion from local and international banks, Bloomberg reported, quoting informed sources.  

JPMorgan Chase & Co, the financial adviser to the Adnoc-led consortium, is leading the financing round, the report said.

Talks between Adnoc and Santos are advancing, with the companies aiming to sign a definitive agreement before the exclusivity period ends on September 19.

Adnoc’s investment arm, XRG, is heading the consortium that includes Abu Dhabi Development Holding Co. (ADQ) and private equity firm Carlyle, seeking to buy Santos for $18.7 billion.

The consortium is conducting due diligence and engaging regulators to help secure approval for the deal, the news agency reported.

Details such as the final size of the proposed debt are not final and could change, the report said.