Adnoc’s $1.6 Billion Stock, Bond Sale Triggers Drop in Fuel Unit

Abu Dhabi’s state oil firm raised $1.64 billion by selling bonds and shares in its fuel arm, which slumped the most in more than a year, Bloomberg News reported. The capital of the United Arab Emirates contains almost all the OPEC member’s hydrocarbon reserves. The government, along with others in the region such as Saudi Arabia and Oman, is seeking to use money from energy assets to build new industries and diversify the economy. Abu Dhabi National Oil Co. sold 375 million shares in Adnoc Distribution PJSC at 4.36 dirhams ($1.19) each on Wednesday, a discount of roughly 10% to that day’s close. The stock fell 8.3% on Thursday to 4.45 dirhams, with trading volumes about 23 times higher than the average over the past month. The shares are still up 19% so far this year and will be included in MSCI Inc.’s index of major emerging-market equities on Thursday. On Wednesday, Adnoc also issued $1.195 billion of senior bonds that mature in 2024 and are exchangeable into the distributor’s stock. The two deals saw “significant demand” from regional and international investors, Adnoc said. They came a day after Abu Dhabi’s government raised $2 billion through seven-year bonds, attracting almost $7 billion in demand. Read more.