The Abu Dhabi National Oil Company (Adnoc) is currently considering a range of financing options, including a $5 billion bank loan, to promote prospects of smart growth and ensure sustainable expansion of its business, a report said.
Adnoc recently announced the expansion of its strategic partnership model, as well as the more active management of its portfolio of assets, including considering a number of financing options for certain assets at its services businesses and infrastructure, added the report.
This includes an IPO of minority stakes of some of its services businesses only, which have attractive investment and growth profiles.
Such IPOs would support the growth and expansion of the UAE’s private sector and equity capital markets and will allow the public, and other investors, to invest alongside Adnoc and benefit from the future growth of these assets. Adnoc will continue to be a committed, long-term majority shareholder in any businesses that are listed. Importantly, there will be no IPO of Adnoc, the Group holding company. Adnoc will remain fully owned by the Government of Abu Dhabi.
A spokesman for Adnoc has stated that these studies are still at an early stage and that no final decisions on figures have been made yet. The company is also mulling over possible options to implement its new initiatives unveiled on July 10, to promote value for money, optimise economic performance, strengthen the culture of sound corporate governance, secure additional capital, invest in new growth opportunities, provide proactive asset portfolio management and initiate a capital restructuring.
He also stressed that these efforts aim to secure the highest possible value for each barrel of oil, in line with the company’s strategic policies.
Adnoc has developed a clear set of criteria by which it will select new partners, including the ability of partners to secure better access to the world’s fastest growing target markets for Adnoc’s products, the willingness to contribute technical expertise and co-develop new technologies alongside Adnoc’s own capabilities, and the potential to co-invest strategically across different parts of a more integrated Adnoc value chain.
The company has stressed that it will start communicating with potential partners, including leading investment entities specialising in areas of infrastructure, energy, long-term investments, petrochemicals and personal property along with international banks and financial institutions.