(Bloomberg) --
Abu Dhabi's ADQ is in talks with banks to raise loans to finance its recent acquisition spree, according to people with knowledge of the matter.
The company, formerly known as Abu Dhabi Development Holding Co., held discussions with local and international banks about the financing, the people said, asking not to be identified because the talks are private. The investment firm could raise more than $3 billion through a five-year loan, one of the people said.
Set up in 2018 as a holding company for some of the United Arab Emirates' biggest assets, including Abu Dhabi Securities Exchange and Abu Dhabi Airports Co., ADQ -- chaired by Sheikh Tahnoon Bin Zayed Al Nahyan -- has been snapping up stakes in local and regional companies in recent months.
Last month, ADQ bought a 50% stake in agricultural business Al Dahra Holding Co. It's also close to buying a majority stake in Jordanian frozen food processor Al-Nabil Food Industries Co., from its founders and the Carlyle Group LP, people with knowledge of the matter said last month. ADQ also recently acquired the 30% of shares in National Petroleum Construction Co. it didn't already own.
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Abu Dhabi, holder of about 6% of the world's proven oil reserves, is seeking to diversify its economy away from crude.
A representative for ADQ declined to comment.
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