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Abu Dhabi National Oil Company (ADNOC) has set the initial price thoughts (IPTs) on its three-part dollar unsecured benchmark bond offering with maturities of five, 10, and 30 years, IFR said on Wednesday.
The state oil giant’s wholly-owned primary debt capital markets funding vehicle, ADNOC Murban RSC Ltd., is marketing the Rule 144A / Regulation S five-year notes at around 105 basis points (bps) over US Treasuries, the 10-year bonds at around 115 bps over UST, and the 30-year portion at around 145 bps, IFR said.
J.P. Morgan and Morgan Stanley are the global coordinators. BofA Securities, Citi and First Abu Dhabi Bank are the bookrunners while Abu Dhabi Commercial Bank, HSBC, Mizuho and SMBC Nikko are acting as passive book runners.
The issuance comes under ADNOC Murban’s Global Medium Term Note Programme dated 2 September 2024 and proceeds will be used for general corporate purposes. They will be listed on the London Stock Exchange.
ADNOC Murban is rated Aa2 by Moody’s, AA by S&P and AA by Fitch – all with Stable Outlook.
The company could raise up to $10 billion in the next four years, according to Fitch Ratings. “Based on contractual agreements with the group, ADNOC Murban's cash flow will be more than sufficient to service the debt it may raise, even under very conservative oil prices.”
(Writing by Brinda Darasha; editing by Seban Scaria)