ADNOC plans fuel retail business stake sale in Dec

Dubai / Reuters

Abu Dhabi National Oil Co (ADNOC) plans to launch a share sale of a stake in its network of fuel service stations and retail convenience stores in December, sources told Reuters on Sunday. The listing for ADNOC Distribution comes as Abu Dhabi and other Gulf states seek to privatise energy assets. Sources told Reuters in September that the company could list more than 10 percent of its fuel retail business and one or two more businesses later as part of a major shake-up.

$6BN LOAN WITH 13 BANKS
ADNOC is expected to sign by the end of this week a $6 billion loan which has received commitments from a group of 13 banks, sources close to the situation said on Sunday. ADNOC, which manages almost all of the proven oil reserves in the UAE, is raising the financing as part of an overhaul of its capital structure which involves, among other things, additional debt raising exercises and the initial public offering of minority stakes in some of its units.
The club loan has been largely oversubscribed, having attracted commitments of $750 million each from a group of 13 banks. Commitments will be scaled down to reach the targeted size of $6 billion size, said the sources.
The group of banks comprises Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, First Abu Dhabi Bank, Goldman Sachs, HSBC, JP Morgan, Mizuho, Societe Generale, Standard Chartered, Sumitomo Mitsui Banking Corporation, and UniCredit, said one source close to the matter.
A spokesman for ADNOC, when asked about the loan, said ADNOC is “taking a more active approach to optimising its capital structure to unlock value, free-up capital, enhance returns and drive smart growth. ADNOC is therefore considering various options with
regards to its financing strategy.”
“The phased and prudent use of bank and other forms of financing represents an attractive and viable funding option for a more efficient and optimal ADNOC capital structure, whilst also allowing access to new and more diverse pools of liquidity.”
ADNOC started discussions with banks about the loan and other financing facilities earlier this year, in a sign that Middle East energy companies are rethinking their expansion strategies in an era of lower oil prices.