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State oil giant Abu Dhabi National Oil Company (ADNOC) has paid ADNOC Distribution bondholders $1.199 billion, redeeming its US dollar-denominated senior unsecured bonds in full and retaining its full ownership of underlying shares in the petrol stations operator.
The exchangeable bonds, which bear a coupon of 0.70%, was issued in May 2021, together with the offering of some 375 million shares in ADNOC Distribution.
"Upon the expiry of the option to settle the bond through share conversion on May 4, 2024, ADNOC has settled the bond in cash, having repaid investors a principal amount of $1.195 billion, along with an applicable coupon amount of $4.18 million," the energy major said in a statement on Monday.
Following the full settlement in cash, ADNOC Distribution’s free float remains unchanged at 23% with ADNOC retaining its 77% majority ownership.
ADNOC said it looks to maintain a stable shareholding level in ADNOC Distribution following maturity of the exchangeable bonds.
ADNOC listed 10% of ADNOC Distribution on the Abu Dhabi Securities Exchange in 2017 following an IPO.
(Writing by Brinda Darasha; editing by Seban Scaria)
