ADNOC raises $1.65bn with bonds, shares
The Abu Dhabi National Oil Company (ADNOC) has raised $1.64bn through the issue of exchangeable bonds and shares in its fuel distribution arm, the company reported on May 26.
ADNOC raised nearly $1.2bn from the sale of senior unsecured bonds due in 2024 with a coupon rate of 0.7%. They can be exchanged for existing common shares in ADNOC Distribution. ADNOC also offered 375mn shares in the subsidiary to eligible institutional investors through a bookbuilding process.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The overall offering was priced at 4.82 dirhams ($1.30)/share, which ADNOC noted was 5.7% above the current three-month average share price. It was covered in less than one hour, generating significant demand from regional and international investors, the company said.
The deal could increase the free float of ADNOC Distribution to 30%, if the exchangeable bonds are swapped for shares. These bonds were issued at a price of 100% and can be exchanged for shares at a price of 5 .01 dirhams.
ADNOC Distribution controls the biggest chain of filling stations and convenience stores in the UAE. ADNOC sold a 10% stake in the subsidiary in 2017 through an initial public offering, raising over $850mn. It went on to sell a further 10% to institutional investors last year, for $1bn.