Adnoc redeems Exchangeable Bonds in ‘Adnoc Distribution’

Abu Dhabi National Oil Company (Adnoc) confirmed that it has redeemed in full its US Dollar-denominated senior unsecured bonds (Exchangeable Bonds) in Abu Dhabi National Oil Company for Distribution  (Adnoc Distribution).

Adnoc paid Bondholders a total amount of $1.199 billion in cash on 4th June 2024, retaining full ownership of the underlying Adnoc Distribution shares.

The Exchangeable Bonds were issued in May 2021 together with the Offering of some 375 million shares in Adnoc Distribution.

Upon the expiry of the option to settle the bond through share conversion on 4th May 2024, Adnoc has settled the bond in cash, having repaid investors a principal amount of $1.195 billion, along with an applicable coupon amount of $4.18 million.

Following the full settlement in cash, Adnoc Distribution’s free float remains unchanged at 23% with Adnoc retaining its 77% majority ownership.

Adnoc reiterates its long-term commitment to Adnoc Distribution, fully supports the company’s growth strategy and firmly believes in its value proposition for all stakeholders.

Adnoc targets to maintain a stable shareholding level in Adnoc Distribution following maturity of the Exchangeable Bonds. Meanwhile, Adnoc Distribution plans to expand its network of fuel stations in the UAE, Egypt, and Saudi Arabia, and launch more fast electric vehicle chargers as part of its five-year growth and expansion strategy.

This was mentioned by Engineer Bader Saeed Al Lamki, CEO of Adnoc Distribution, in statements on the sidelines of the second and final day of the Make It in the Emirates Forum. He added that the company aims to expand its network of filling stations from 840 currently in the UAE, Egypt, and Saudi Arabia to around 1,000 stations over the next five years.

“Adnoc Distribution targets opening between 15 and 20 new fuel stations this year in key locations that are easy to access, in addition to its plans to expand non-fuel retail services, as part of its efforts to become a leading company in the multi-energy sector.”

He added, “Adnoc Distribution currently has 90 fast EV charging points in key locations, and aims to reach 150-200 fast chargers by the end of this year. The company also plans to install 500 fast electric chargers over the next five years.”

Last month, Adnoc Distribution announced a robust Q1 2024 financial results, reporting an 18% year-on-year increase in its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) to $248 million, demonstrating that the Company remains firmly on track to achieving the goals outlined in its new five-year strategy.

The progress follows sustained momentum in both fuel and non-fuel retail segments in Q1, including developments in Adnoc Distribution’s pipeline of more than 20 Artificial Intelligence (AI)-driven initiatives, such as Fill and Go and the Fuel Demand AI Model, aimed at accelerating growth and enhancing operational efficiencies.