RLPC-Abu Dhabi's IPIC launches $2.5 bln loan - sources

LONDON, March 2 (Reuters) - Abu Dhabi government-owned International Petroleum Investment Company (IPIC) has launched a $2.5 billion, three-year term loan that will refinance existing debt, banking sources close to the deal said.

Bank of Tokyo-Mitsubishi UFJ, HSBC, National Bank of Abu Dhabi and Santander are arranging the deal, which pays a margin of 150 basis points over LIBOR, the bankers said.

Banks are invited to commit a top ticket of $200 million for a 150 basis points fee as mandated lead arrangers, two bankers said. Lenders can commit in dollars or dirhams, they said.

Syndication is scheduled to close on March 15, with signing on March 22, one banker said.

Proceeds will be used to refinance part of a $5 billion loan agreed by IPIC in June 2009.

The new loan takes out a $1.25 billion, one-year tranche coordinated by Bank of Tokyo-Mitsubishi UFJ, HSBC and Santander, and formed part of a bigger $5 billion loan. It also refinances a one-year $1.2 billion-equivalent dirham deal arranged at the same time by National Bank of Abu Dhabi and provided by local banks.

The margin on the $1.25 billion loan was 250 basis points over LIBOR for the first six months, rising to 350 basis points for the next three months and 400 basis points thereafter. The margin on the local currency loan was 250 basis points.

Under the original $1.25 billion tranche, lenders were entitled to a 50 basis points duration fee payable this month. This will now be transferred to the tranche B which is not being refinanced, one of the bankers said.

Proceeds of the $5 billion loan backed IPIC's $500 million takeover of Canada-based raw plastics manufacturer Nova Chemicals Corp, and an increased stake in Spanish oil company Cepsa CEP.MC. (Reporting by Christopher Mangham; Editing by Dan Lalor)