Abu Dhabi National Oil Company (ADNOC) said on Wednesday it plans to issue about $1.2 billion in exchangeable bonds and will offer more shares to investors in its listed retail unit ADNOC Distribution.
ADNOC plans to issue senior unsecured bonds due in 2024, with a 0.7 percent annual coupon, exchangeable into existing common shares of ADNOC Distribution, it said.
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Alongside the transaction, ADNOC will offer 375 million shares in ADNOC Distribution at an offer price of 4.36 dirhams ($1.19) a share to eligible institutional investors through a bookbuilding process.
The combined offering will enable “ADNOC to further unlock and monetize significant value from its assets, whilst also increasing the free float of ADNOC Distribution, boosting liquidity in its shares and diversifying its shareholder base,” it said.
ADNOC listed 10 percent of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates, on the Abu Dhabi Securities Exchange in 2017.
It sold another 10 percent of shares in ADNOC Distribution last year in a placement to institutional investors.
ADNOC has over the past few years launched a series of initiatives to create partnerships with foreign investors and extract value form its assets, as the Abu Dhabi oil giant adapts to a new era of lower oil prices.
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