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The UAE-based ADNOC Logistics & Services Plc has issued a $1.1-2.0 billion hybrid capital instrument to fund growth, including the acquisition of an international shipping pool operator
The initial drawing against the facility will be $1.1 billion, leaving $0.9 billion capacity available to be drawn until 31 December 2026.
Approximately $1 billion of the facility will be utilised to fund the acquisition of Navig8 TopCo Holdings Inc., the Singapore-based tanker management company, a deal the shipping and maritime logistics arm of state oil giant Abu Dhabi National Oil Company had notified in 2024.
The remainder is available to fund announced or new investments. The first drawdown against the facility bears an all-in pricing below SOFR (Secured Overnight Financing Rate) +150 basis points and is repayable at the company’s discretion.
Hybrid capital refers to financial instruments that have properties of both debt and equity and are designed to be subordinated to other types of debt.
CEO Captain Abdulkareem Al Masabi said the combination of existing cash, the new finance facility, and the cash flow from contracted vessels ensures adequate funding for the company to grow.
The energy maritime logistics company has committed to grow investments to over $5 billion since its IPO in June 2023 and set down a target leverage of 2.0 – 2.5x net debt-to-EBITDA.
The facility has been arranged and led by Societe Generale with participation from Abu Dhabi
Commercial Bank, First Abu Dhabi Bank, Crédit Agricole Corporate and Investment Bank, BBVA and DBS Bank.
(Writing by Brinda Darasha; editing by Seban Scaria)
