7.7 billion dirhams deal to acquire “Abu Dhabi Pensions” and “Holding”...

7.7 billion dirhams deal to acquire “Abu Dhabi Pensions” and “Holding”...
7.7 billion dirhams deal to acquire “Abu Dhabi Pensions” and “Holding”...

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7.7 billion dirhams, Abu Dhabi Pensions and Holding Company’s acquisition of 20% of ADNOC Gas Pipelines, today, Friday, October 16, 2020 05:33 am

  • Abu Dhabi – the statement

History: October 16, 2020

The Abu Dhabi National Oil Company (ADNOC) announced the signing of an agreement in which the Abu Dhabi Pension Fund and the Holding Company (ADQ) will invest 7.7 billion dirhams in a specific group of ADNOC gas pipelines infrastructure assets.

Under the agreement, ADNOC will sell the 20% of ADNOC Gas Pipeline Holding Company, a wholly owned subsidiary of it, which owns 100% of ADNOC’s stake in ADNOC Gas Pipeline Assets Company, to Abu Dhabi Pension Fund and “Holding” (ADQ). ADNOC Gas Pipeline Company, a subsidiary of ADNOC, has the rights to lease 38 gas pipelines, with a total length of 982 kilometers.

Global coalition

This investment comes on the heels of the establishment of a global consortium, which includes Global Infrastructure Partners, Brookfield Asset Management, Singapore Sovereign Wealth Fund, Ontario Provincial Teachers’ Pension Fund Board and NH Investments. And the Securities »and« SANAM », with an investment of 37.1 billion dirhams in July 2020, to obtain a 49% stake in the same group of gas pipelines assets, which ADNOC owns.

ADNOC will receive returns of 7.7 billion dirhams, under this new investment, which is based on the criteria for basic valuation and the terms of the initial investment agreement with the global investment consortium. The agreement reflects ADNOC’s keenness to involve local and international investors in the distinct opportunities it provides, as in the massive investment in oil pipeline assets agreement, which it signed in September 2019. With leading local companies joining investors in infrastructure assets, ADNOC is benefiting from new capital. In the long term, while at the same time retaining control and ownership of the assets covered by the investment.

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, CEO of ADNOC and its Group of Companies said: “In line with the directives of the wise leadership, to attract investments and build partnerships that achieve the maximum possible value from the company’s assets and resources, we are pleased to cooperate again with both the Abu Dhabi Retirement Fund and the Holding In this smart investment in energy infrastructure assets, which provides a distinct model for global and local investment institutions wishing to invest long-term capital in major assets of ADNOC’s energy infrastructure.

He added: “The Abu Dhabi Retirement Fund is a reliable investor for the savings of the country’s citizens, and a guarantee of long-term growth and prosperity. Through this partnership, ADNOC will play an important role in supporting the well-being of citizens and the happiness of the UAE community, as this investment will generate additional value and stable and long-term cash returns. To our new partners ».

Asset quality

He continued: “The addition of two leading companies in the UAE to this investment confirms the excellence and quality of ADNOC’s energy infrastructure assets, and the long-term returns it provides, and contributes to strengthening the confidence of the global investment community in the UAE and its position as a reliable investment destination. And enhancing ADNOC’s position and role as a major catalyst to attract leading global capital and foreign direct investment to Abu Dhabi and the UAE.

This agreement will provide the Abu Dhabi Retirement Fund and “Holding” (ADQ), a unique opportunity to invest in high-quality infrastructure assets with stable cash flows, reflecting the continuous strong demand from the global and local investment community to invest in ADNOC’s premium assets.

This is the second investment for the Abu Dhabi Pension Fund, in ADNOC’s infrastructure assets, after the oil pipeline investment deal in April 2019. Last July, ADNOC signed a joint venture agreement with the Holding Company (ADQ) to create a new investment platform to develop Financing and supervising the establishment of industrial projects within the “Ruwais Petrochemical Derivatives Complex”.

Strategic partnership

Khalaf Abdullah Rahma Al Hammadi, Director General of the Abu Dhabi Retirement Fund, stressed the importance of the distinguished strategic partnership at all levels, indicating that the continued cooperation between the two parties in the field of investment contributes to diversifying the investment portfolio of the fund and achieving long-term returns, in the interest of registered citizens. In the Abu Dhabi retirement system.

He said, “The Fund is keen to implement the directives of the wise leadership, and to 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 benefit.”

He added: “This agreement comes on the heels of the successful investment cooperation between the fund and ADNOC in the field of infrastructure, which took place through an agreement concluded last year, and it was a major shift in the quality of the fund’s investments, as it contributed to achieving many gains,” affirming the fund’s keenness. On the sustainability and strengthening of cooperation with the national “ADNOC”, which is a pioneer in attracting various investments.

Stable flows

Mohamed Hassan Al-Suwaidi, CEO of ADQ, said: “The Holding Company (ADQ) invests in a group of basic infrastructure assets, which represent a major part of Abu Dhabi’s goal of achieving self-sufficiency in gas and reaching exporting it at a rate that exceeds its import. . This strategic investment in gas infrastructure provides us with an opportunity to achieve stable and easy-to-predict financial flows. We are keen to strengthen our relationship with ADNOC through its world-class infrastructure, in line with our mission through which we seek to provide quality value to the emirate.

Bank of America, First Abu Dhabi Bank and Mizuho Securities acted as financial advisor to ADNOC, while Mullis & Company acted as independent financial advisor to ADNOC.

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