Abu Dhabi's ADNOC will raise $1.5 billion through Islamic bonds

A document seen on Monday revealed that Abu Dhabi's state-owned oil company ADNOC would raise $1.5 billion through the first sale of Islamic bonds or sukuk.

The document stated that Abu Dhabi National Oil Company, acting through ADNOC Murban its primary debt capital market entity, sells the sukuk for 60 basis points more than U.S. Treasuries.

ADNOC has received over $3.85 billion for 10-year Islamic bonds. These bonds will be used to fund general corporate purposes.

ADNOC raises $4 billion

ADNOC Murban is the company's flagship crude oil grade. It was established in August, over two and half years ago.

In a presentation, Chief Investment Officer Klaus Froehlich stated that ADNOC was likely to tap the market between $3 billion and 5 billion dollars a year. This excludes alternative markets such as sukuk.

The document stated that Standard Chartered was acting as the sole global coordinator of the sukuk sales, and that Abu Dhabi Commercial Bank (Abu Dhabi Islamic Bank), Dubai Islamic Bank (Emirates NBD Capital), First Abu Dhabi Bank (Morgan Stanley) and MUFG acted as active bookrunners.

(source: Reuters)