ADNOC Logistics and Services launches a mixed equity instrument

ADNOC Logistics and Services PLC announced today that it has signed a new mixed equity instrument with a value ranging between 4 billion and 7.3 billion dirhams ($1.1 and 2 billion).

A first tranche worth 4 billion dirhams ($1.1 billion) will be withdrawn from the financing instrument initially, leaving an amount of 3.3 billion dirhams ($0.9 billion) available for withdrawal until December 31, 2026.

Approximately 3.7 billion dirhams ($1 billion) from the mixed equity instrument will be used to finance the acquisition of Navig8, and the remaining financial amount will be available to finance announced or new investments.

The hybrid equity instrument bears a first all-in cost of less than +150 basis points above the overnight safe financing rate, which is reimbursable at the discretion of ADNOC Logistics and Services.

Captain Abdul Karim Al Musabi, CEO of ADNOC Logistics and Services, said that this financing is receiving great interest from banks and strong support from new partners.

He added that the combination of current cash liquidity, new financing facilities, and cash flow resulting from the fleet of contracted ships ensures that the company obtains the necessary financing to seize growth opportunities of cumulative value available in line with the company’s strategy to enhance its leadership in the field of logistics and maritime services for the energy sector.

It is noteworthy that ADNOC Logistics and Services Company has committed to growth investments of more than 18.4 billion dirhams ($5 billion), since its public offering in June 2023, in implementation of the transformational growth strategy that the company announced during the public offering.

ADNOC Logistics and Services Company announced a target leverage of 2-2.5 times the ratio of net debt to earnings before interest, taxes, depreciation and amortization during the public offering.

By increasing equity financing at a competitive cost, ADNOC Logistics and Services is expanding its ability to continue to provide growth investments with cumulative value within the targeted leverage range, securing investor returns on equity while creating the ability to achieve further growth.

These facilities were arranged and managed by a group of banks, including Société Générale, with the participation of Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Credit Agricole Corporate and Investment Bank, Banco Bilbao Vizcaya Argentaria, and DB. S Bank.