ADNOC raises $1.5bn in Islamic bonds

The Abu Dhabi National Oil Company (ADNOC) has raised $1.5 billion through ADNOC Murban, the group’s dedicated capital-markets vehicle. 

According to arranging banks, the ten-year sukuk was priced at 60 basis points over comparable US Treasuries and drew investor orders exceeding $3.85 billion.
 
Standard Chartered acted as global coordinator. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital and MUFG joined as active bookrunners.

The transaction follows a $4 billion conventional bond issue completed in September 2024. ADNOC’s chief investment officer, Klaus Froehlich, has said the company expects to raise between $3 billion and $5 billion in the bond market each year, excluding additional financing options such as sukuk.

ADNOC is allocating an initial $23 billion to lower-carbon projects in pursuit of net-zero operations by 2045.

Earlier this year, it also generated $2.84 billion from a secondary offering of ADNOC Gas shares, increasing the subsidiary’s free float to 14%.