The Abu Dhabi National Oil Company (ADNOC) announced that it intends to settle its U.S. Dollar-denominated senior unsecured exchangeable bonds in ADNOC Distribution PJSC via a cash payment upon maturity on June 4, 2024.
The exchangeable bonds carry a 0.70 percent coupon. ADNOC will pay up to $1.195 billion to fully redeem the bonds, plus up to $4.18 million in applicable interest.
ADNOC issued the exchangeable bonds in May 2021, offering 375 million shares in ADNOC Distribution at that time. The option to settle the bonds through share conversion will expire on 2024-05-04.
By redeeming the exchangeable bonds in cash, ADNOC will retain ownership of the underlying ADNOC Distribution shares, which amount to approximately 7 percent of the company’s registered share capital. ADNOC Distribution’s free float will remain at 23 percent following the bond redemption.
As the majority shareholder of ADNOC Distribution, ADNOC reaffirms its long-term commitment to the company. ADNOC fully supports ADNOC Distribution’s recently unveiled mid-term growth strategy and believes this will create additional value for all stakeholders.
ADNOC will maintain a stable shareholding level in ADNOC Distribution upon the maturity of the exchangeable bonds.
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