Abu Dhabi's state-owned fund International Petroleum Investment Company (IPIC) is self-arranging a $2 billion refinancing loan, according to banking sources.

The loan will be split between a $1 billion three-year facility paying a margin of 40 basis points (bps) over Libor and a $1 billion five-year facility paying a margin of 50 bps over Libor, with both tranches paying utilisation fees on top, one of the bankers said.

The deal, which is expected to be completed as a club loan, will be provided by around 12 banks, the banker added.

IPIC last tapped the international loan market in March 2012 when it signed a $850 million, three-year refinancing loan with mandated lead arrangers BNP Paribas, Bank of America Merrill Lynch, DBS and Standard Chartered. That loan paid all-in pricing of around 100 bps, according to Thomson Reuters LPC data.-Reuters