ADNOC Logistics & Services announced signing a $1.1-2.0 billion (Dh4.0-7.3 billion) Hybrid Capital Instrument (HCI). The initial drawdown from the HCI is $1.1 billion (Dh4.0 billion), with an additional $0.9 billion (Dh3.3 billion) available until December 31, 2026.
The company will allocate approximately $1.0 billion (Dh3.7 billion) from the HCI to fund the acquisition of Navig8. The remaining funds will support both announced and future value-accretive investments.
The first drawdown is priced below SOFR+150 basis points and will be repayable at ADNOC L&S’s discretion.
“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,” said Captain Abdulkareem Al Masabi, CEO of ADNOC L&S.
Since its IPO in June 2023, ADNOC L&S has committed over $5 billion (Dh18.4 billion) in growth investments, aligning with its long-term expansion strategy. The company’s leverage target remains within a net debt-to-EBITDA range of 2.0–2.5x, as stated during the IPO.
By raising equity financing at competitive costs, ADNOC L&S aims to sustain value-accretive growth investments while maintaining returns on equity and supporting further expansion.
The financing facility was 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.
