Abu Dhabi state oil giant Adnoc will raise $1.5 billion from a debut sale of Islamic bonds, or sukuk, according to a document seen by Reuters on Monday.
Abu Dhabi National Oil Company, acting through its primary debt capital markets entity Adnoc Murban, is selling the sukuk at 60 basis points over US Treasuries, the document said.
Adnoc received more than $3.85 billion in demand for the 10-year Islamic bonds, which will be used for general corporate purposes.
Adnoc raised $4 billion from conventional bonds in September, more than two and a half years after it set up Adnoc Murban, which is named after its flagship crude grade.
Chief investment officer Klaus Froehlich said in a presentation at the time that Adnoc would likely tap the market for between $3 billion and $5 billion a year, excluding alternative markets like sukuk.
Standard Chartered is acting as sole global coordinator for the sukuk sale, while Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Morgan Stanley and MUFG were active bookrunners, the document said.
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