DUBAI: Abu Dhabi state investment fund Mubadala expects to cut the cost of a $2bn refinancing it will unveil next week by promising banks that take part a share of more lucrative work in future. 

An existing loan taken out in 2010 will be replaced with a three-year, multi-currency facility, Kelly Thomson, Mubadala’s head of structured finance, told a conference in Dubai yesterday.

Banks taking part will be regarded by Mubadala, which is arranging the deal itself, as relationship lenders, Thomson said, meaning they will be chosen for future work.

Given the potential future benefit, pricing on such relationship deal is often lower than it might otherwise be.

Reuters