Abu Dhabi- The Abu Dhabi National Oil Company (ADNOC) has announced that it is currently considering a range of financing options, including bank loans, to promote prospects of smart growth and ensure sustainable expansion of its business, adding that it is negotiating with a number of banks to arrange a $5 billion (AED18.5 billion) loan.
ADNOC recently announced that it is considering a number of financing options for certain assets at its services businesses and infrastructure. This includes an IPO of minority stakes of some of its services businesses only.
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 remain fully owned by the Government of Abu Dhabi.
A spokesman from 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 10th July, to promote value for money, optimize 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.
ADNOC seeks to expand its strategic partnerships scope 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 specializing in areas of infrastructure, energy, long-term investments, petrochemicals and personal property along with international banks and financial institutions.