Direct upfront proceeds of US$2.7bn will flow to ADNOC from the transaction
Abu Dhabi National Oil Company recently signed an agreement worth US$ 5.5bn (AED 20.2bn) with Apollo Global Management to lease some of its properties on a long term basis, as part of its plans to unlock capital from its non-core assets.
The New York-based alternative asset manager and its subsidiaries will receive rental income streams from select ADNOC properties over a period of 24 years.
The investment, which follows a $20.7bn transaction involving ADNOC’s gas pipelines this year, will ‘unlock new pools of global institutional long-term capital,’ the company stated.
Apollo will take a 49 per cent stake in ADNOC affiliate, Abu Dhabi Property Leasing Holding Company.
“The innovative and flexible deal structure ensures ADNOC maintains full ownership and control over its real estate assets, while further strengthening our balance sheet and allowing for greater capital flexibility,” remarked Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Group Chief Executive.
“In a market where high-quality, long-dated yield is scarce, this transaction allows our clients to participate in a proprietary investment alongside a world-class company like ADNOC,” commented Leon Black, Chairman & CEO, Apollo.
ADNOC also agreed to form a joint venture with Abu Dhabi holding company ADQ earlier this year to hasten the development of chemicals manufacturing at Ruwais.
