In an effort to propel its fundraising efforts, UAE-based oil firm Adnoc raised $1.64 billion through the sale of stocks and bonds to institutional investors. In an announcement by Abu Dhabi’s state oil firm, the deals were completed on Wednesday and saw “significant demand” from both regional and international investors alike.
Adnoc’s stock and bond sales came just one day after the Abu Dhabi government raised $2 billion from seven-year bonds, with over $7 billion in demand being generated. The capital of the United Arab Emirates, Abu Dhabi contains almost all the OPEC member’s hydrocarbon reserves.
The UAE, along with other Gulf nations such as Saudi Arabia and Oman, aims to utilize its funds acquired from energy assets to diversify the economy.
Since 2016, Adnoc has been consistently undergoing corporate restructuring, which involved opening up more of its infrastructure and operating activities to investors. In the past year, around $15 billion has been invested by the likes of Brookfield Asset Management Inc. and Apollo Global Management Inc. in Adnoc’s gas pipelines and real estate.
The company is also considering IPOs for two of its businesses, namely its drilling business and a fertilizer joint venture called Fertiglobe.
