UAE’s ADNOC pays off $1.19bn to ADNOC Distribution bondholders

UAE’s ADNOC Group announced on Monday that it has paid off $1.99 billion to ADNOC Distribution bondholders, thus retaining full ownership of the fuel retailer’s underlying shares.

The exchangeable bonds were issued in May 2021 along with the offering of approximately 375 million shares in ADNOC Distribution.

“On expiry of the option to settle the bond through share conversion on May 4, 2024, ADNOC has settled the bond in cash, having repaid investors a principal amount of $1.195bn, along with an applicable coupon amount of $4.18m,” the state-owned energy firm said in a statement.

Following the full settlement in cash, the fuel retailer’s free float remains unchanged at 23 per cent with ADNOC retaining its 77 per cent majority ownership. The state-owned energy firm seeks to “maintain a stable shareholding level in ADNOC Distribution following the maturity of the exchangeable bonds.”

ADNOC Distribution reported an 18 per cent year-on-year increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $248 million in Q1 2024. Its net profit for the same period came in at $150m, compared to $146m for the same period a year ago.

The company opened eight new service stations in the three months to March 31, 2024, expanding its total network to 846 stations and remains on track to achieve its full-year target of adding as many as 20 new sites.

The fuel retailer aims to expand its network of fast-charging stations for electric cars from its current 840 stations in the UAE, Egypt and Saudi Arabia to 1000 in the next five years.

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