KKR and BlackRock are seeking to raise a USD3bn loan to fund their purchase of a stake in Abu Dhabi National Oil Co. (ADNOC)’s pipelines business, according to people with knowledge of the plan. The private equity firms’ special purpose vehicle has reached out to foreign banks for a 23-year facility, which would be one of the largest infrastructure financing deals in the Gulf this year, said the people. Sumitomo Mitsui and BNP Paribas are among lenders helping arrange the loan, which is expected to get more expensive over time, they said. KKR and BlackRock agreed in February to invest USD4bn in Abu Dhabi’s oil pipelines, securing two decades of guaranteed returns and providing the Middle Eastern energy producer with cash to help diversify its economy. The companies will become partners in the newly formed Adnoc Oil Pipelines, which will lease the assets for 23 years, Adnoc said in a statement at the time. Adnoc will own 60% of the joint venture, while the private equity firms’ special purpose vehicle will hold the rest. The deal, which is expected to close in 3Q19, gives the partnership leases on 18 pipelines. Adnoc will continue to manage operations.