ADNOC Successfully Prices Inaugural US$1.5 Billion Sukuk Under New International Programme

ADNOC Murban Sukuk Limited, a special purpose entity, has successfully priced its first Shari’a compliant trust certificates under a new International Sukuk Programme. This issuance, valued at US$1.5 billion, is the largest AA-rated Corporate Sukuk globally. ADNOC Murban RSC Ltd, a subsidiary of Abu Dhabi National Oil Company (ADNOC), will serve as the Obligor for this Sukuk.

The Sukuk will be issued in a single tranche with a principal amount of $1.5 billion and will mature on 6th May 2035. It offers an annual profit rate of 4.75 percent, paid semi-annually. The pricing achieved one of the lowest new issue premiums for Shari’a-compliant securities in the region and the tightest corporate US dollar 10-year spread.

Strong investor interest from key Islamic markets contributed to this successful pricing. This reflects confidence in ADNOC’s credit quality and its robust strategy across commodity price cycles. The issuance aims to diversify ADNOC’s funding sources and expand its investor base.

This strategic move builds on ADNOC Murban’s previous Global Medium Term Note bond issuance in September 2024 and its Green Financing Facility signed in June 2024. The Sukuk is expected to be issued on 6th May 2025 and listed on the London Stock Exchange's International Securities Market.

ADNOC Murban holds ratings of "Aa2" from Moody’s Investor Services, "AA" from Standard & Poor’s, and "AA" from Fitch Ratings. These ratings align with those assigned to ADNOC’s shareholder, the Government of Abu Dhabi. The Sukuk itself has provisional ratings of "Aa2" by Moody's and "AA" by Fitch.

Standard Chartered Bank served as the sole Global Coordinator and Joint Sukuk Structuring Bank for this transaction. Active Bookrunners included Abu Dhabi Islamic Bank, Dubai Islamic Bank, First Abu Dhabi Bank, Emirates NBD Capital, Abu Dhabi Commercial Bank, MUFG, and Morgan Stanley.

Role of Passive Bookrunners

KFH Capital, Sharjah Islamic Bank, SMBC, and the Islamic Corporation for the Development of the Private Sector acted as Passive Bookrunners for this offering. The transaction remains subject to customary closing conditions before finalisation.

This issuance marks a significant step in ADNOC's disciplined funding strategy aimed at enhancing financial flexibility while maintaining strong credit ratings.

With inputs from WAM