Abu Dhabi’s state oil firm raised $1.64 billion through a stock and bond sale to institutional investors as the emirate continues to leverage energy assets to generate funds.
The capital of the United Arab Emirates, contains almost all the OPEC member’s hydrocarbon reserves. The government, along with others in the region such as Saudi Arabia and Oman, is seeking to use money from energy assets to build new industries and diversify the economy.
Both deals were completed on Wednesday and saw “significant demand” from regional and international investors, Adnoc said. They came a day after Abu Dhabi’s government raised $2 billion through seven-year bonds, attracting almost $7 billion in demand.
Abu Dhabi National Oil Co. sold 375 million shares in Adnoc Distribution PJSC, offering them at 4.36 dirhams ($1.19) each, a roughly 10% discount to Wednesday’s close. The fuel-retail unit fell as much as 9.3% in early trading on Thursday before paring losses to 4.64 dirhams -- down 4.3% -- by 10:12 a.m. in Abu Dhabi.
Adnoc also issued $1.195 billion of senior bonds that mature in 2024 and are exchangeable into the distributor’s stock.
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