ADNOC to raise USD 7 billion

Abu Dhabi

ABU DHABI, August 4, 2017 – Abu Dhabi National Oil Company (ADNOC) is in the process of selecting a bank to manage a project bond sale and is also considering a multi-billion-dollar loan, international media reported Thursday.

The bond could be valued at up to USD 2 billion, backed by the income from the company’s midstream assets, Bloomberg reported.

Reports last week had suggested the NOC was in talks with regional and international banks, and sources cited by Reuters placed the value in the range of several billion dollars, with one specifying USD 4 billion-5 billion.

In recent weeks, ADNOC has been looking at diversifying its fundraising sources as low oil prices have decreased government funding for the NOC. It plans to sell minority stakes in some of its services companies through IPOs on local equity markets starting in the next few months.

Investment is expected from both regional and international – especially Asian – sources. ADNOC has said shares of the group holding will not be sold, but it is looking to form partnerships with institutions including large trading houses, pension funds, private equity investors and infrastructure specialists as well as NOCs and IOCs.

The company expects these partners to assist it with market access, technology and knowledge transfer, and capital.