Abu Dhabi National Oil Co (ADNOC) is exploring a possible issue of bonds to benefit from low-interest rates, his chief financial officer said on Wednesday.
State-owned ADNOC granted Fitch’s AA credit rating in February, will be motivated by the first international debt issue of Saudi Aramco in April, when it sold $12 billion in bonds after obtaining more than $100 billion in orders.
“We’re going to look. These are extremely low-interest rates, so if you don’t issue, you’re making a big appeal for judgment, “CFO Mark Cutis said when asked at a Bloomberg event whether ADNOC will look at a bond issue in the first quarter of 2020.
Asked if the future bond issue would be bigger than that of Aramco, Cutis said: “We are still in negotiation.”
The oil and gas giant of the United Arab Emirates, long known as one of the most traditional energy companies in the Gulf region, has embarked on a major transformation over the past few years in an attempt to respond more rapidly to market changes.
The UAE, the Organization of Petroleum Exporting Countries (OPEC)’s third-largest oil producer behind Saudi Arabia and Iraq, produces about 3 million barrels of oil a day, most of which is provided by ADNOC.