By Yousef Saba and Hadeel Al Sayegh
DUBAI, April 5 (Reuters) - Abu Dhabi National Oil
Company is considering reviving plans to issue U.S.
dollar-denominated bonds more than a year after it set up a
debt-issuing unit to tap the debt capital markets, said two
sources with direct knowledge of the matter.
The state oil giant set up ADNOC Murban in January 2022 and
tapped JPMorgan and Morgan Stanley to hold investor meetings
that month.
The debt markets, however, were plunged into turmoil
following Russia's invasion of Ukraine the following month and
remained turbulent for much of last year.
ADNOC has held conversations with banks over the planned
issue, one of the sources said, declining to be named as the
matter is not public.
A deal could happen following the Muslim holiday of Eid
al-Fitr, the sources said, which is near the end of April and
ends the fasting month of Ramadan. They did not specify an exact
time for a possible deal.
Issuance would be subject to market conditions and a final
decision by ADNOC, the sources said.
ADNOC declined to comment.
ADNOC Chief Investment Officer Klaus Froehlich said during
an investor presentation seen by Reuters last year "this bond
programme is not necessarily a necessity to refinance bank
loans, but a proactive move in order to build a curve".
He added, "we will be accessing the market in sizes of
around $3 to $5 billion per annum."
ADNOC has repeatedly weighed whether to issue bonds amid
rising interest rates and as it sits on a huge windfall from
high oil prices last year, bankers have said.
The United Arab Emirates, a major OPEC oil exporter, is
hosting the COP28 climate summit near the end of this year.
The UAE designated ADNOC Group CEO Sultan al-Jaber as
president of COP28, drawing criticism from climate activists.
Al-Jaber has said his main priority will be to keep alive
the goal of limiting global warming to 1.5 degrees Celsius and
that tackling climate change required a united effort. (Reporting by Yousef Saba and Hadeel Al Sayegh; editing by
Jason Neely)
