ADNOC Murban issues $1.5bn sukuk in debut offering

ADNOC Murban Sukuk Limited, a special purpose vehicle established to issue sukuk certificates, has successfully launched its inaugural Shari’a-compliant trust certificates under its newly created International Sukuk Programme.

The $1.5bn sukuk, issued on the International Securities Market of the London Stock Exchange, matures on May 6, 2035, and offers an annual profit rate of 4.75 per cent payable semi-annually.

The obligor of the sukuk is ADNOC Murban RSC, a wholly owned subsidiary of ADNOC, and the ADNOC Group’s primary issuing and rated entity in debt capital markets.

Sukuk garners strong demand from global Islamic investors

Priced on April 28, 2025, the issuance garnered strong demand from global Islamic investors, reflecting market confidence in ADNOC’s high credit quality and robust performance across commodity cycles.

The transaction achieved one of the lowest-ever new issue premiums for Shari’a-compliant securities in the region and marked the tightest-ever corporate US dollar 10-year spread in the regional market.

This sukuk issuance builds on ADNOC Murban’s broader funding strategy, following its inaugural gobal medium term note bond issuance in September 2024 and a green financing facility secured in June 2024.

Net proceeds from the sukuk will be used by ADNOC Group for general corporate purposes.

ADNOC Murban holds credit ratings of “Aa2” from Moody’s Investor Services, and “AA” from both Standard & Poor’s (S&P) and Fitch Ratings, mirroring the ratings of its shareholder, the government of Abu Dhabi.

The sukuk itself is rated “Aa2” by Moody’s and “AA” by Fitch.

Standard Chartered Bank served as the sole global coordinator and joint sukuk structuring bank.

Active bookrunners and joint sukuk structuring banks included Abu Dhabi Islamic Bank, Dubai Islamic Bank, and First Abu Dhabi Bank.

Emirates NBD Capital, Abu Dhabi Commercial Bank, MUFG, and Morgan Stanley acted as active bookrunners, while KFH Capital, Sharjah Islamic Bank, SMBC, and the Islamic Corporation for the Development of the Private Sector participated as passive bookrunners.