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ADNOC closes GIC’s $600 mln investment in pipeline infrastructure

Sep 04, 2019
2 min read
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Abu Dhabi National Oil Company (ADNOC) said it has formally closed its $600 million pipeline infrastructure investment agreement with GIC, Singapore’s sovereign wealth fund, bringing total investments in the project to near US$5 billion.

“This marks the successful closing of the total investment transaction, following the formal closing of the initial investment agreement with BlackRock and KKR on June 27, and the subsequent closing of the Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF) investment on August 1,” ADNOC said in a statement. “The closing takes the combined investment in select ADNOC oil pipeline infrastructure by BlackRock, KKR, ADRPBF and GIC to $4.9 billion.”

The innovative leasing investment structure marks the first time that leading, global and domestic institutional investors have deployed long-term capital into key ADNOC infrastructure assets. BlackRock and KKR together hold 40 per cent, ADRPBF 3 per cent, GIC 6 per cent and ADNOC the remaining 51 per cent in the newly formed entity, ADNOC Oil Pipelines LLC (‘ADNOC Oil Pipelines’). Sovereignty over the pipelines and management of pipeline operations remain with ADNOC.

Ahmed Jasim Al Zaabi, group director finance and investment at ADNOC said: “The successful final closing of this landmark transaction is a clear vote of confidence by the global investment community in both the UAE and ADNOC as attractive investment destinations. The calibre of these leading global and domestic investors underlines the quality and attractiveness of ADNOC’s infrastructure assets and our ability to efficiently structure and close value-creating investment opportunities for our partners and investors.”

Over the last two years, ADNOC has significantly expanded its strategic partnership and co-investment model and created new investment opportunities across all areas of its value chain, while at the same time, more proactively managing its portfolio of assets and capital.

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