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ADNOC looks at issuing new bond to leverage low rates

Oct 03, 2019
2 min read
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Abu Dhabi National Oil Co (ADNOC) is considering a possible bond issue to take advantage of low interest rates, its chief financial officer said, according to Reuters.

“We will take a look. These are historically low interest (rates), so if you’re not issuing, you’re making a big judgment call,” Reuters quoted CFO Mark Cutis who said when asked at a Bloomberg event whether ADNOC would look at a bond issue in the first quarter of 2020.

Asked whether the potential bond issue would be bigger than Aramco’s, Cutis said “we are still in discussions.”

State-owned ADNOC was given an AA credit rating by Fitch in February, just ahead of Saudi Aramco’s first international debt issue in April, when it sold $12 billion of bonds after receiving more than $100 billion in orders.

Dr Sultan Al Jaber, Group CEO of ADNOC at the Bloomberg Capital Markets Forum said Abu Dhabi’s and the UAE have a position as an attractive investment destination and is a driver of growth.

“We are capitalising on this environment to unlock, create and maximise value. We are making smarter use of our capital and more proactively managing our portfolio of assets. We are strengthening existing relationships and forging new ones. And we are seizing opportunities together with our partners to create new revenue streams across our entire value chain.”

The UAE, the third-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC) behind Saudi Arabia and Iraq, pumps about 3 million barrels of oil per day, most of which is produced by ADNOC.

“ADNOC is ready and willing to explore creative opportunities for partnership and co-investment. We will examine innovative and out-of-the-box ideas that make economic sense… and enhance our mission as a responsible energy provider,” he added.


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