ADNOC Logistics & Services announced signing a $1.1 – 2 billion (AED 4-7.3 billion) hybrid capital instrument (HCI).
Initial drawing against the HCI will be $1.1 billion (AED 4 billion), leaving $0.9 billion (AED 3.3 billion) capacity available to be drawn until 31 December 2026, the company said.
Approximately $1 billion (AED 3.7 billion) of the HCI will be utilised to fund the acquisition of Navig8.
The remainder is available to fund announced or new value-accretive investments, it said.
The first drawdown against the HCI bears an all-in pricing below SOFR+150 basis points (bps) and is repayable at ADNOC L&S’ discretion.
The facility has been arranged and led by Societe Generale with participation from Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Crédit Agricole Corporate and Investment Bank, BBVA and DBS Bank.
Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said the company has received strong interest in the bank market and firm support from its new partners to conclude this financing transaction.
“The combination of existing cash, the new finance facility, and the cash flow from our contracted vessels ensures that we are adequately funded to capitalise on value-accretive growth opportunities in line with our strategy of building a leading energy maritime and logistics company,” he said.
ADNOC L&S has committed to growth investments of over $5 billion (AED 18.4 billion) since its IPO in June 2023.
Many of these value-accretive investments are against long-term contracted income, with over 340 years of contracted revenues committed during 2024.
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