‘ADNOC Completes Redemption of Exchangeable Bonds in Distribution Arm’

Abu Dhabi National Oil Company (ADNOC) has announced that it has fully redeemed its US Dollar-denominated senior unsecured bonds (Exchangeable Bonds) in ADNOC Distribution, paying bondholders a total of .199 billion in cash on June 4, 2024. This move allows ADNOC to retain full ownership of the underlying ADNOC Distribution shares.

The Exchangeable Bonds were initially issued in May 2021 alongside an offering of 375 million shares in ADNOC Distribution. After the option to settle the bond through share conversion expired on May 4, 2024, ADNOC chose to settle the bond in cash, repaying investors the principal amount of .195 billion plus an applicable coupon amount of .18 million.

Despite the redemption, ADNOC Distribution’s free float remains at 23%, with ADNOC maintaining a majority ownership of 77%. ADNOC has expressed its ongoing commitment to ADNOC Distribution, supporting the company’s growth strategy and believing in its value proposition for stakeholders. Moving forward, ADNOC aims to sustain a stable shareholding level in ADNOC Distribution following the maturity of the Exchangeable Bonds.

This announcement underlines ADNOC’s dedication to its subsidiary and its long-term strategic goals. With a solid financial footing and a clear vision for the future, ADNOC is poised to continue driving growth and success within the energy sector.