ADNOC holds investor meetings ahead of debut bonds in 2022

ADNOC holds investor meetings ahead of debut bonds in 2022

DUBAI- Abu Dhabi National Oil Company's newly set up debt-issuing unit, ADNOC Murban, began holding investor meetings on Tuesday ahead of its debut bond sale expected this year, an investors' note seen by Reuters showed.

The meetings, coordinated by JPMorgan JMP.N and Morgan Stanley MS.N , will run through Friday and will target investors in Asia, Europe, the United States, and the Middle East and Africa, according to the note.

ADNOC and JPMorgan did not respond to emailed requests for comment. Morgan Stanley declined to comment.

The ability to tap the debt capital markets will give ADNOC flexibility to raise debt with longer tenors and potentially better pricing.

Regional peer Saudi Aramco issued its debut bonds in April 2019, raising $12 billion ahead of its record $29.4 billion initial public offering. Qatar Energy also raised $12.5 billion in last year's largest bond sale out of emerging markets.

Investors have previously been offered bonds carrying ADNOC risk indirectly.

In an investor presentation reviewed by Reuters, ADNOC billed Murban as a "superior proposition for bondholders", in part due to a prospective "highest ranking position in ADNOC's cash waterfall".

ADNOC Murban investors get paid before ADNOC Group royalties, most operating expenditures, and tax, the presentation said.

Named after ADNOC's flagship crude