Adnoc Breaks Bond Silence

Adnoc Breaks Bond Silence

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  • Abu Dhabi’s primary oil producer, Adnoc, is preparing for its debut in the bond market, over two years after forming an entity to explore such financing opportunities. The company launched a two-day roadshow on Monday, aiming to raise funds through five-, 10-, and 30-year debt offerings, according to sources familiar with the matter. Adnoc is expanding its oil production capacity within the UAE while also pursuing international acquisitions, including a potential €11.7 billion ($13 billion) offer for German chemical maker Covestro AG, following recently completed due diligence.

  • In 2023, Adnoc generated over $30 billion in cash flows, with an additional $13 billion in the first half of 2024, as reported by Moody’s Ratings. The company plays a crucial role in Abu Dhabi’s economy, contributing approximately 75% of government revenues and half of the emirate’s GDP. The proposed bond sale comes at a time of increasing volatility in global crude prices, driven by uncertainties around economic growth, Chinese energy demand, and OPEC’s supply strategies. The debt offering follows a similar move by Saudi Aramco, which raised $6 billion in a three-tranche transaction in July, meeting strong investor demand.

Why it matters

Adnoc’s entry into the bond market marks a significant financial move for the company amid a turbulent energy landscape.

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