ADNOC Abu Dhabi Announces $1.5 Billion Islamic Sukuk Issuance

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Abu Dhabi oil giant ADNOC is set to raise $1.5 billion through its maiden sale of its first Islamic bond.


ADNOC, through its primary market entity ADNOC Murban, successfully sold the sukuk at 60 basis points over the US Treasury.


ADNOC received over $3.85 billion in demand for the 10-year sukuk in line with the company’s core direction.


ADNOC has also raised $4 billion in conventional bonds in the two years since ADNOC Murban was established.


Chief Investment Officer Klaus Froehlich said ADNOC will tap into the market to the tune of between $3 billion and $5 billion per year, excluding alternative markets such as sukuk.


Standard Chartered is acting as the sole global coordinator for the sukuk sale.


Abu Dhabi Commercial Bank, Dubai Islamic Bank, Emirates NBD Capital, Abu Dhabi Islamic Bank, Morgan Stanley, First Abu Dhabi Bank and MUFG are acting as joint lead managers.