Adnoc has created a new subsidiary, ‘Adnoc Murban’, to “become the primary debt capital markets issuing and rated entity for Adnoc Group.” Adnoc Murban will effectively tap into global debt markets on behalf of Adnoc, and shield its parent company from having to disclose sensitive financial and operational data to prospective bondholders.
Two of Adnoc’s subsidiaries – Adnoc Distribution and Abu Dhabi Crude Oil Pipeline (Adcop) – have previously issued bonds, but the parent company has to date preferred alternative fund raising methods. Adnoc has monetized its assets to raise funds through lease agreements, and has also carried out IPOs of business lines (MEES, 12 December 2021). Now, Adnoc is preparing itself to issue bonds through Adnoc Murban, which will “closely monitor market conditions and explore potential funding opportunities.” Bloomberg reports that meetings with potential investors began this week with an eye to issuing bonds later this year. (CONTINUED - 637 WORDS)