ADNOC unit issues $3bn bond to support growth plans

Abu Dhabi Crude Oil Pipeline says issuance is one of the largest non-sovereign bond offerings in Middle East
By Staff writer
Mon 06 Nov 2017 01:00 PM

The Abu Dhabi National Oil Company (ADNOC) on Monday announced the successful issuance and closing of a $3 billion bond, one of the largest non-sovereign bond offerings in the history of the Middle East.

The bond was issued by Abu Dhabi Crude Oil Pipeline (ADCOP), an entity 100 percent owned by the ADNOC Group, which owns a 406km pipeline that carries crude oil from a collection centre in Abu Dhabi to the Fujairah oil export terminal, which provides access to international shipping routes.

The pipeline is a key asset for the UAE’s oil industry and, coupled with the strategic location of Fujairah, allows for a significant proportion of the UAE’s total crude oil production to be transported from Abu Dhabi directly to the Arabian Sea.

Proceeds from the issuance will be used by ADNOC to support its future growth and investment plans, a statement said.

Dr Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO said: “The very attractive pricing and substantial international demand for this offering positively reflects the UAE’s stable investment environment, as well as ADNOC’s new and progressive approach to its long-term financing strategy.

“This bond represents an important, initial milestone in our efforts to fully optimize our capital structure in a smarter, more efficient and flexible manner.”

The pipeline has been operating since 2012 and in 2016, it had an average throughput of approximately 615,000 barrels per day. The pipeline is designed to transport 1.5 million barrels per day of crude oil, with the ability to increase its capacity to 1.8 million barrels per day.

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