28/02/2018 06:42 AST
The Abu Dhabi National Oil Company, also known as Adnoc, is making smarter use of capital to fund an ambitious growth plans and accelerate delivery on the goals of its 2030 strategy, says Dr Sultan bin Ahmad Sultan Al Jaber, Minister of State and chief executive of Adnoc Group.
Speaking at the Global Financial Markets Forum in Abu Dhabi on Tuesday, Dr Al Jaber said that Adnoc is seeking to work more closely with the financial markets as it delivers its 2030 smart growth strategy, in response to a fast-evolving economic and energy landscape. Dr Al Jaber made his comments during a panel discussion entitled 'Abu Dhabi's transformation journey'.
"We are making smarter use of our capital and will work with the financial markets as we proactively manage our portfolio of assets and capital to further unlock value from within Adnoc," he added.
Adnoc's engagement with the financial markets, Dr Al Jaber said, is an example of the new strategic partnership model the company is implementing. While Adnoc continues to appreciate all its partners, from East to West, he said, it's new approach is centred on strategic relationships that deliver growth opportunities, market access, smart capital and strategic value-add.
Al Jaber said Adnoc's issuance of a $3 billion bond, backed by the Abu Dhabi Crude Oil Pipeline, and the partial listing of Adnoc Distribution, as examples of how Adnoc is taking a new, more dynamic approach to managing its assets and capital, adding that while Adnoc, as a holding company, would remain government-owned, there will be a further co-investment opportunities, for those who recognize the mutual benefits in partnering with it.
Adnoc has in recent months tapped the equity and bond markets to raise funds. It listed its distribution unit in December and has raised billions of dollars in debt including a $3 billion loan with a Japanese export credit agency last month.
ADGM, which opened in October 2015, and the older and larger Dubai International Financial Centre (DIFC) are the UAEs' two international hubs for banking and fund management.
The launch of ADGM was part of Abu Dhabi's drive to widen its footprint in the Gulf's competitive financial services industry.
ADGM contains about 60 regulated financial institutions, among 700 or more companies registered there, according to an ADGM official. DIFC, established in 2004, had 1,750 incorporated companies as of June 2017.
"Many banks will set up a presence, even a small one to ensure they get a slice of the business in Abu Dhabi," the banker said. "No one would like to miss out on the business in Abu Dhabi, which has deep pockets and huge ambitions."
Abu Dhabi is looking to raise billions of dollars by listing some of its state-backed companies such as Emirates Global Aluminium, Abu Dhabi Ports and industrial conglomerate Senaat.
"ADGM is the creation of the government so Abu Dhabi Inc should use ADGM as much as possible, that's logical," said Philippe Richard, director of international affairs at Abu Dhabi Global Market.
Confirming plans for significant downstream investments, over the next five years, Dr Al Jaber went on to say that ADNOC is committed to becoming a leading global downstream player, through an ambitious domestic and international investment strategy, aimed at capitalising on growth markets. "Adnoc plans to build on the strong foundation it has created in Ruwais to develop the world's largest integrated refining and chemical site, tripling petrochemicals production capacity to 14.4 million tonnes by 2025," he continued.
Khaleej Times
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