Adnoc may raise $5B for expansion

abu dhabi — The Abu Dhabi National Oil Company, Adnoc, has announced that it is currently considering a range of financing options, including bank loans, to promote prospects of smart growth and ensure sustainable expansion of its business, adding that it is negotiating with a number of banks to arrange a $5 billion (Dh18.5 billion) loan.

Adnoc recently announced the expansion of its strategic partnership model, as well as the more active management of its portfolio of assets, including considering a number of financing options for certain assets at its services businesses and infrastructure.

This includes an IPO of minority stakes of some of its services businesses only, which have attractive investment and growth profiles. Such IPOs would support the growth and expansion of the UAE’s private sector and equity capital markets and will allow the public, and other investors, to invest alongside Adnoc and benefit from the future growth of these assets. Adnoc will continue to be a committed, long-term majority shareholder in any businesses that are listed. Importantly, there will be no IPO of Adnoc, the Group holding company. Adnoc will remain fully owned by the Government of Abu Dhabi. A spokesman for Adnoc has stated that these studies are still at an early stage and that no final decisions on figures have been made yet. —