Abu Dhabi’s state energy company ADNOC announced on Monday that it plans to raise $1.5 billion through its first-ever sukuk, or Islamic-compliant bond, as part of a strategy to diversify its funding sources.
The sukuk will be issued by ADNOC Murban RSC Ltd, a wholly owned subsidiary and the main debt-issuing arm of the group. The bond is expected to carry a spread of 60 basis points over U.S. Treasuries and has already attracted more than $3.85 billion in investor demand, according to Reuters.
The new sukuk program will allow ADNOC to tap into Islamic financial markets for the first time, broadening its investor base and providing access to alternative capital. The company said the offering is subject to market conditions, pricing, and standard closing procedures.
“Through the Shari’a-compliant securities, the program will cater to a broader pool of potential ADNOC investors while also diversifying ADNOC’s sources of funding,” the company stated.
The announcement follows a string of financing activities by ADNOC Murban, including its first Global Medium Term Note issuance in September 2024 and a Green Financing Facility signed in June 2024.
ADNOC joins a growing number of national oil companies in the Middle East turning to debt markets, as falling oil prices put pressure on revenues and increase the need for alternative funding.
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