DUBAI  - Abu Dhabi’s Mubadala is in talks with banks to refinance an existing $1.75 billion revolving loan due in May next year, three sources familiar with the matter said.

The state investment fund signed the original loan in 2016 with a group of 21 international banks. A revolving loan is one that can be drawn, repaid and drawn again during the agreed lending period.

“Mubadala has maintained revolving credit facilities since 2006 as part of our strategy to achieve a diversified funding base for the Group. Our current revolving credit facility matures in 2019, and we are planning to renew with our core relationship banks,” said a spokesman for the state fund.

Mubadala, which Abu Dhabi merged with International Petroleum Investment Co (IPIC) last year, has recently worked to reorganise its debt to adjust for that deal.

The new loan could be increased to include IPIC’s debt requirements, said one source close to the deal. IPIC has a $1 billion revolving credit facility due in December this year, according to Refinitiv data.

IPIC last month asked bondholders to agree to Mubadala Investment Company - the merged entity - becoming guarantor of IPIC's existing bonds. 

"The end result will be a more efficient single, rated entity within the group responsible for our capital market funding activities," Mubadala said in a statement at the time.

Mubadala issued a new $800 million 10-year bond last week after repurchasing some of its shorter-dated debt. 

(Additional reporting by Stanley Carvalho; Editing by Mark Potter) ((; +971522604297; Reuters Messaging: