Apr 29, 2025 (MarketLine via COMTEX) --
The bonds, with a ten-year maturity, attracted more than $3.85bn in demand, indicating strong investor interest.
The Abu Dhabi National Oil Company (ADNOC) has initiated a $1.5bn sale of Islamic bonds, also known as sukuk, through its debt capital markets entity ADNOC Murban.
The offering is priced at 60 basis points above US Treasury yields, according to Reuters.
The sukuk, with a ten-year maturity, attracted more than $3.85bn, indicating strong investor interest.
The proceeds will be used for general corporate purposes.
The move follows a $4bn capital raise by ADNOC from conventional bonds in September 2024 - a significant step since the establishment of ADNOC Murban, named after the company's premium crude grade.
ADNOC's chief investment officer, Klaus Froehlich, had previously outlined the company's funding strategy.
In a presentation, he stated that ADNOC would likely tap the market for between $3bn and $5bn a year, not accounting for alternative financing options such as sukuk.
The sukuk sale is being coordinated by Standard Chartered.
Other financial institutions including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and MUFG are acting as active bookrunners.
Established in 1971, ADNOC is a diversified energy group, wholly owned by the Abu Dhabi government.
ADNOC is allocating an initial $23bn to advance and accelerate lower-carbon solutions, investing in new energies and decarbonisation technologies that will allow it to achieve net-zero operations by 2045.
In early 2025, ADNOC concluded the marketed offering of ADNOC Gas shares, generating $2.84bn. The transaction involved the sale of 3.1 billion ordinary shares, which is 4% of ADNOC Gas' issued share capital, and increased the company's free float by 80%.
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COMTEX_465049561/2227/2025-04-29T18:04:29
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