Abu Dhabi National Oil Company (ADNOC) PJSC (ADNOC) announced today that it intends to settle, via a cash payment, its US Dollar-denominated senior unsecured bonds (Exchangeable Bonds) in Abu Dhabi National Oil Company for Distribution PJSC (ADNOC Distribution), which bear a coupon of 0.70%, upon maturity on June 4, 2024. Fulfilling its financial obligations, ADNOC will pay up to $1.195 billion, along with up to $4.18 million in applicable interest.
ADNOC issued the Exchangeable Bonds in May 2021, together with the Offering of some 375 million shares in ADNOC Distribution. The option to settle the bond through share conversion will expire on May 4, 2024. ADNOC will settle the bond in full in cash and retain ownership of the underlying shares, which amount to approximately 7% of the registered share capital of ADNOC Distribution. ADNOC Distribution’s free float will remain at 23% following the Exchangeable Bonds’ redemption.
As a majority shareholder in ADNOC Distribution, ADNOC reiterates its long-term commitment to the company, fully supports its recently unveiled new mid-term growth strategy and firmly believes this will create additional value for all stakeholders. ADNOC will maintain a stable shareholding level in ADNOC Distribution upon maturity of the Exchangeable Bonds.
