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Business Markets

UAE's ADNOC to pay out $1.195b to ADNOC Distribution bondholders in June

Payment relates to exchangeable bonds issued in May 2021 for ADNOC Distribution

The ADNOC Distribution bond represents nearly 7 per cent of its share capital. On maturity, the parent entity ADNOC will continue to retain this stake.
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Dubai: The Abu Dhabi enery giant ADNOC will make a $1.195 billion payment for bondholders in ADNOC Distribution. The payment includes up to $4.18 million in applicable interest.

ADNOC Distribution's dollar-denominated senior unsecured bonds reach maturity on June 4. It has a coupon rate of 0.70 per cent.

ADNOC had issued the exchangeable bonds in May 2021, alongside an offering of around 375 million shares in ADNOC Distribution. The option to settle the bond through share conversion expires on May 4.

"ADNOC will settle the bond in full in cash and retain ownership of the underlying shares, which amount to approximately 7 per cent of the registered share capital of ADNOC Distribution," said a statement. (ADNOC Distribution’s free float will remain at 23 per cent following the Exchangeable Bonds’ redemption.)

"As a majority shareholder in ADNOC Distribution, ADNOC reiterates its long-term commitment to the company, fully supports its recently unveiled new mid-term growth strategy and firmly believes this will create additional value for all stakeholders," the statement added.


"ADNOC will maintain a stable shareholding level in ADNOC Distribution upon maturity of the exchangeable bonds."