Adnoc successfully completes $1.5b debut international sukuk issuance

Adnoc Murban Sukuk Limited (the Issuer), a special purpose vehicle specifically set up to issue Sukuk certificates, has successfully issued its inaugural offering of Shari’a compliant trust certificates (Sukuk) under its newly established International Sukuk Programme (the Programme).

The Obligor for the Sukuk is Adnoc Murban RSC Ltd, a wholly owned subsidiary of Abu Dhabi National Oil Company (Adnoc) and the primary debt capital markets issuing and rated entity for Adnoc Group.

The Sukuk was issued on the International Securities Market of the London Stock Exchange at a principal amount of US$1.5 billion, maturing on 6th May 2035, with an annual profit rate of 4.75 per cent to be paid semi-annually.

The offering generated significant interest across key global Islamic investors, reflecting the market’s belief in Adnoc’s exceptional credit quality and resilient strategy across commodity price cycles. It was successfully priced on 28th April 2025, at one of the lowest-ever new issue premiums for Shari’a-compliant securities in the region, and at the region’s tightest-ever corporate US dollar 10-year spread.

The successful issuance, which captured a strategic opportunity to further diversify Adnoc’s funding sources and broaden its investor base, is part of a disciplined funding strategy building onAdnoc Murban’s inaugural Global Medium Term Note bond issuance in September 2024, and Green Financing Facility signed in June 2024.

Net proceeds of the issuance will be used by Adnoc Group for general corporate purposes.

Adnoc Murban is rated “Aa2” by Moody’s Investor Services, “AA” by Standard & Poor’s (S&P) and “AA” by Fitch Ratings - aligned with ratings assigned toAdnoc’s shareholder, the Government of Abu Dhabi. The Sukuk has been assigned a rating of “Aa2” by Moody’s, and “AA” by Fitch.

Standard Chartered Bank acted as sole Global Coordinator and Joint Sukuk Structuring Bank. Abu Dhabi Islamic Bank, Dubai Islamic Bank, and First Abu Dhabi Bank acted as Active Bookrunners and Joint Sukuk Structuring Banks. Emirates NBD Capital, Abu Dhabi Commercial Bank, MUFG, and Morgan Stanley acted as Active Bookrunners, whereas KFH Capital, Sharjah Islamic Bank, SMBC, and the Islamic Corporation for the Development of the Private Sector acted as Passive Bookrunners on the Sukuk offering.

Meanwhile, Adnoc Drilling Company has announced it has been awarded a contract for three island rigs by Adnoc Offshore for an estimated total contract value of US$806 million to support expanding operations at the offshore Zakum development project.

These three rigs are in addition to three ordered in July 2024.

Abdulrahman Abdulla Al Seiari,Adnoc Drilling CEO, said, “Adnoc Drilling is proud to be awarded this significant, long-term contract, marking another major milestone in our accelerated growth journey. These next generation island rigs, built with embedded artificial intelligence, represent a leap forward in technology, enhancing safety, efficiency and performance. This award strengthens our position as a critical enabler of Adnoc’s production capacity targets, while delivering sustainable, high-quality returns for our shareholders well into 2038 and beyond.” The contract will follow existing agreements that generate long-term revenue and attractive returns. The three new island rigs will operate on Adnoc’s existing and newly constructed innovative artificial islands for drilling and completion of wells.

Tayba Abdul Rahim Al Hashemi, Chief Executive Officer o of Adnoc Offshore, said, “We are focused on unlocking maximum value from the resources in Abu Dhabi’s waters in the most efficient and innovative ways possible. These advanced island rigs delivered byAdnoc Drilling will play a vital role in achieving our production capacity goals and meeting global energy demand. Together, we are pushing the boundaries of technology, operational excellence and partnership to power sustainable growth.” This new generation of island rigs, expected to gradually join the fleet between 2027 and 2028, will be developed through a strategic collaboration betweenAdnoc Drilling and Honghua Group (HH).

The partnership is formed specifically to embed the transformative power of AI, advanced digitalization and real-time analytics into rig design and operations.

Leveraging real-time condition monitoring, performance optimsation and predictive analytics, the rigs will generate actionable insights that drive higher operational efficiency, improved well delivery times and enhanced safety.

Designed to operate on Adnoc’s pioneering artificial islands – home to the world’s five longest wells, including a recent record-setting well at 53,000 feet – the rigs will be optimised for extended reach drilling (ERD). Additionally, state-of-the-art walking capabilities will enable seamless movement between well slots without the need for rig dismantling, significantly improving uptime, reducing emissions and lowering operating costs.

Agencies