Abu Dhabi oil producer seeks $7 bn in funding

Abu Dhabi oil producer said to seek about $7bn in funding. Adnoc pumps most of the crude in the UAE, an Opec member with about 6% of global reserves. Abu Dhabi National Oil Co asked banks for proposals to manage the sale of a project bond and is also seeking a loan as the government-owned energy producer considers raising as much as $7bn for its businesses, according to three people with knowledge of the situation. The bond, which could be for more than $2bn, will be backed by revenue from assets like pipelines or oil storage projects, according to the people, who asked not to be identified because the information is confidential. Adnoc is also looking at a loan of about $5bn, the people said.

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Adnoc pumps most of the crude in the UAE, an Opec member with about 6% of global reserves

The producer is weighing its financing options and wants to expand partnerships with local and international lenders, a company media official said in a statement, responding to a request for comment. Adnoc has no plans to issue bonds at the parent level, according to the statement.
Adnoc pumps most of the crude in the UAE, an Opec member with about 6% of global reserves. The company said last month that it may sell minority stakes in some units and will seek more international partners to spur growth. While it has ventures to produce oil and natural gas with companies from countries including the US, China and Japan, it also may tap international expertise and funding for businesses such as energy trading and refining. Project bonds generally pay lenders from money generated by an asset and don’t give creditors recourse to the parent company in event of a default. Selling bonds would be a departure for Adnoc, which has taken loans from Japanese banks under that country’s energy supply arrangements with Abu Dhabi.