Abu Dhabi, 16 October 2020 – One of the region’s largest holding companies, ADQ and Abu Dhabi Pension Fund (ADPF) will invest $2.1 billion into select ADNOC gas pipeline infrastructure assets. The announcement was made by The Abu Dhabi National Oil Company (ADNOC).
ADNOC will divest 20% in ADNOC Gas Pipelines HoldCo LLC, a wholly owned ADNOC entity that holds 100% of ADNOC’s interest in ADNOC Gas Pipeline Assets LLC (ADNOC Gas Pipelines), to ADPF and ADQ. ADNOC Gas Pipelines is a subsidiary of ADNOC with lease rights to 38 gas pipelines covering a total of 982 kilometers as per the terms of the agreement. In July 2020, a consortium of global investors, comprising Global Infrastructure Partners, Brookfield Asset Management, Singapore’s sovereign wealth fund GIC, Ontario Teachers’ Pension Plan Board, NH Investment & Securities and Snam (the Consortium), invested $10.1 billion for a collective 49% stake in the same select ADNOC gas pipeline infrastructure assets.
Sharing his views on the investment, His Excellency Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group CEO, said: “We are delighted to once again partner with both Abu Dhabi Pension Fund and ADQ. Joining our global investor consortium partners in this landmark energy infrastructure investment, the addition of these high-caliber UAE investors sets a new benchmark for leading global and domestic institutional investors to deploy long-term equity capital into key ADNOC energy infrastructure assets.
“By partnering again with Abu Dhabi Pension Fund, the custodian and investor of the UAE’s citizens savings and long-term prosperity, ADNOC is playing a pivotal role in ensuring the financial wellbeing of the UAE community and its people. This follow-on investment will generate stable, long-term value and returns to both Abu Dhabi Pension Fund and ADQ’s stakeholders. Their engagement highlights and underlines the attractiveness and long-term value creation potential of our unique energy assets to the global investment community, further reinforcing ADNOC’s role as a primary driver in attracting tier one global institutional capital into Abu Dhabi and the UAE.”
For ADPF this marks the second investment partnership into ADNOC’s infrastructure assets, following its $300 million investment into select ADNOC oil pipelines, announced in April 2019. In July 2020, ADNOC and ADQ signed a joint venture agreement to create a new investment platform to fund and oversee the development of industrial projects within the planned Ruwais Derivatives Park.
“The Fund is keen to implement the directives of the UAE’s wise leadership and achieve the Abu Dhabi government’s vision aimed at building strong partnerships between major national institutions to support the national economy and achieve the highest possible benefits, said His Excellency Khalaf Abdullah Rahma Al Hammadi, Director General of Abu Dhabi Pension Fund.
“This agreement comes after the successful investment cooperation between the Fund and ADNOC in the oil pipeline infrastructure space, which concluded last year and marked a major shift in the quality of the Fund’s investments. The Fund is looking to strengthen its strategic partnership with ADNOC to further diversify its investment portfolio and achieve long-term returns for its stakeholders.”
“ADQ is investing in a group of midstream infrastructure assets, which are at the heart of Abu Dhabi’s goal of achieving gas self-sufficiency and becoming a gas net exporter. Our strategic investment in ADNOC’s gas infrastructure provides us with the opportunity for stable, predictable cash flows. Aligned with our mandate to create value for Abu Dhabi, we are further strengthening our relationship with ADNOC and its world-class infrastructure in the Emirate” commented His Excellency Mohamed Hassan Alsuwaidi, CEO of ADQ.
Since announcing the expansion of its partnership and investment model and the more proactive value management of its assets and capital in 2017, ADNOC has entered the debt capital markets for the first time, issuing a $3 billion bond backed by the Abu Dhabi Crude Oil Pipeline; partially floated ADNOC Distribution, the first-ever IPO of an ADNOC Group company; and entered into several strategic investment partnerships in its drilling, refining, fertilizer and trading businesses, amongst others. ADNOC also recently closed innovative investment partnerships with leading global institutional investors and operators in both its oil and gas pipelines and non-oil and gas strategic infrastructure.
News Source: www.adq.ae
For More Information, You can visit the website: www.adq.ae
——
Disclaimer: The content of the above information is sourced (or provided), in entirety or in parts from an external source and the content may or may not be edited. The Wealth Today shall not be held liable for damages arising out of any action taken with respect to the use or consumption of information or service published above or anywhere else on the website. This website does not guarantee the accuracy, views, opinions or any promises expressed in the above news.
If you find any errors or discrepancies in the above information, you can write to us at editor@thewealth.today.
——
