ADNOC Successfully Completes $1.5 Billion International Sukuk Issuance To Diversify Funding Sources

ADNOC Murban Sukuk Limited has successfully launched its first Shari’a-compliant trust certificates (Sukuk) through a newly created International Sukuk Programme. The Issuer, a special purpose vehicle, issued these certificates with ADNOC Murban RSC Ltd as the Obligor. This entity is a fully owned subsidiary of Abu Dhabi National Oil Company (ADNOC) P.J.S.C., serving as the main debt capital markets issuer for ADNOC Group.

The Sukuk was listed on the International Securities Market of the London Stock Exchange, with a principal amount of US$1.5 billion. It is set to mature on 6th May 2035 and offers an annual profit rate of 4.75 percent, payable semi-annually. The issuance attracted considerable interest from global Islamic investors, highlighting confidence in ADNOC’s robust credit quality and strategic resilience amid commodity price fluctuations.

This successful issuance was priced on 28th April 2025, achieving one of the lowest new issue premiums for Shari’a-compliant securities in the region. It also marked the tightest-ever corporate US dollar 10-year spread in the area. The initiative aims to diversify ADNOC’s funding sources and expand its investor base, following previous financial strategies such as ADNOC Murban's Global Medium Term Note bond issuance in September 2024 and a Green Financing Facility signed in June 2024.

Proceeds from this issuance will be utilised by ADNOC Group for general corporate purposes. ADNOC Murban holds ratings of "Aa2" from Moody’s Investor Services, "AA" from Standard & Poor’s (S&P), and "AA" from Fitch Ratings, consistent with those assigned to its shareholder, the Government of Abu Dhabi. The Sukuk itself received ratings of "Aa2" from Moody's and "AA" from Fitch.

Standard Chartered Bank played a pivotal role as the sole Global Coordinator and Joint Sukuk Structuring Bank for this offering. Active Bookrunners included Abu Dhabi Islamic Bank, Dubai Islamic Bank, and First Abu Dhabi Bank, who also served as Joint Sukuk Structuring Banks. Additionally, Emirates NBD Capital, Abu Dhabi Commercial Bank, MUFG, and Morgan Stanley were involved as Active Bookrunners.

Passive Bookrunners for this offering comprised KFH Capital, Sharjah Islamic Bank, SMBC, and the Islamic Corporation for the Development of the Private Sector. This diverse group of financial institutions underscores the broad support and collaboration behind this significant financial endeavour.

The issuance represents a strategic move by ADNOC to leverage market opportunities while maintaining a disciplined approach to funding. By tapping into global Islamic finance markets, ADNOC not only diversifies its funding sources but also strengthens its position within international capital markets.

With inputs from WAM