Abu Dhabi National Oil Company (Adnoc) Drilling plans to raise USD 1 bn in financing this year to refinance maturing debt, support expansion, and fund dividends, CFO Youssef Salem told Bloomberg (watch, runtime: 4:11). The company has USD 750 mn in debt due in 4Q 2025, Salem said later at a press briefing, Bloomberg reports, with plans for “refinancing and up-sizing to fund our growth,” he added.

We knew refinancing was on the cards for Adnoc Drilling this year: Salem previously said that the company aimed to refinance USD 2 bn in term debt in 4Q 2025 through a global syndicate of lenders, including European, American, Japanese, Middle Eastern, and Chinese lenders. The CFO also said that the firm plans to invest some USD 750 mn in oilfield services technology acquisitions through Enersol, Adnoc Drilling’s JV with Alpha Dhabi, while distributing USD 5 bn in dividends over the next five years — equivalent to 20% of its market cap.

Adnoc Drilling will fund about half of its planned acquisition spree, with joint venture partners covering the rest. Salem confirmed that the company has strong debt-raising capacity and can leverage cash flows for acquisitions. This year, it aims to acquire two drilling technology companies worth at least USD 700 mn as part of a broader strategy to enhance efficiency through technology and AI, the business information service reports.

ICYMI- Acquisitions were a key pillar of Adnoc Drilling’s 2024 strategy. Last year, its JV Enersol acquired stakes in four firms, including NTS Amega, Gordon Technologies, Deep Well Services, and EV Holdings.

Regional expansion is also on the horizon: Adnoc Drilling could also explore acquisitions of rigs or drilling businesses in Kuwait and Oman, after being pre-qualified for operations in both markets. Drilling in these countries is set to begin this year, Salem said.

OTHER DEBT NEWS-

Bank of Sharjah leads USD 155 mn loan for Daewoo E&C: The Bank of Sharjah served as mandated lead arranger and bookrunner for a USD 155 mn, three-year club loan facility for South Korean firm Daewoo Engineering & Construction Co, along with regional banks, state news agency Wam reports. The facility will support Daewoo’s working capital and global project pipeline.

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