ADNOC redeems exchangeable bonds, retains stake in ADNOC Distribution

ADNOC completes redemption of its US dollar-denominated senior unsecured bonds, also known as exchangeable bonds, in ADNOC Distribution, the company has announced on Monday.

The redemption, executed on June 4th, 2024, saw ADNOC disbursing a total sum of $1.199 billion in cash, thereby retaining full possession of the underlying ADNOC Distribution shares.

These exchangeable bonds were initially issued in May 2021 concurrently with the offering of approximately 375 million shares in ADNOC Distribution. As of May 4th, 2024, the option to settle the bond through share conversion expired, prompting ADNOC to settle the bond in cash. Investors received the principal amount of $1.195 billion along with an accrued coupon amount of $4.18 million.

Despite the cash settlement, the free float of ADNOC Distribution remains steady at 23 per cent, as ADNOC maintains its majority ownership of 77 per cent.

ADNOC reaffirms its steadfast commitment to ADNOC Distribution, endorsing the company’s growth trajectory and emphasising its value proposition to all stakeholders. Additionally, ADNOC aims to sustain a stable shareholding in ADNOC Distribution post the maturity of the exchangeable bonds.

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