ADNOC L&S issues HCI to finance transformational growth

Initial drawing against the HCI will be $1.1 billion (AED4.0 billion), leaving $0.9 billion (AED3.3 billion) capacity available to be drawn until 31st December 2026.

Approximately $1.0 billion (AED3.7 billion) of the HCI will be utilised to fund the acquisition of Navig8. The remainder is available to fund announced or new value-accretive investments.

The first drawdown against the HCI bears an all-in pricing below SOFR+150bps and is repayable at ADNOC L&S’ discretion.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said, “We are pleased to have concluded this financing transaction and have received strong interest in the bank market and firm support from our new partners.

The combination of existing cash, the new finance facility, and the cash flow from our contracted vessels ensures that we are adequately funded to capitalise on value-accretive growth opportunities in line with our strategy of building a leading energy maritime and logistics company.”

ADNOC L&S has committed to growth investments of over $5 billion (AED18.4 billion) since its IPO in June 2023, delivering on its committed transformational growth strategy announced at the IPO.

ADNOC L&S enunciated a target leverage of 2.0 – 2.5x net debt: EBITDA at IPO. By raising equity financing at a competitive cost, ADNOC L&S extends its capacity to continue to deliver value-accretive growth investments within that target leverage range, securing investor returns on equity whilst creating capacity for further valuable growth.

The facility has been arranged and led by Societe Generale with participation from Abu Dhabi Commercial Bank, First Abu Dhabi Bank, Crédit Agricole Corporate and Investment Bank, BBVA and DBS Bank.