The Abu Dhabi National Oil Company (ADNOC) confirmed that it has fully redeemed its U.S. dollar-denominated senior unsecured exchangeable bonds (Exchangeable Bonds) issued by ADNOC Distribution PJSC.
ADNOC paid the bondholders a total of $1.199 billion in cash, retaining full ownership of the underlying ADNOC Distribution shares. The Exchangeable Bonds were initially issued in May 2021 along with an offering of approximately 375 million ADNOC Distribution shares.
Upon the expiration of the option to settle the bonds through share conversion on May 4, 2024, ADNOC chose to settle the bonds in cash. This involved repaying the principal amount of $1.195 billion to investors, as well as an applicable coupon payment of $4.18 million.
Read more: ADNOC L&S acquires 80 percent of Navig8 for $1.04 billion
With the full cash settlement, ADNOC Distribution’s free float remains unchanged at 23 percent, while ADNOC maintains its 77 percent majority ownership stake.
ADNOC reiterated its long-term commitment to ADNOC Distribution, expressing full support for the company’s growth strategy and confidence in its value proposition for all stakeholders. Going forward, ADNOC aims to maintain a stable shareholding level in ADNOC Distribution following the maturity of the Exchangeable Bonds.
Earlier this month, ADNOC Logistics and Services (ADNOC L&S) announced an agreement to acquire Navig8 TopCo Holdings Inc. (Navig8), an international shipping pool operator and commercial management company. ADNOC L&S will acquire 80 percent of Navig8 for AED3.8 billion ($1.04 billion) with an economic ownership transfer effective from January 1, 2024. Moreover, it will acquire the remaining 20 percent ownership in 2027 for a deferred consideration of AED1.2 billion to AED1.7 billion.
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