The Abu Dhabi Pension Fund (ADPF) and holding firm ADQ have made a $2.1 billion funding within the state’s gasoline pipeline property.
The state pension fund and holding firm will take a one-fifth stake within the gasoline pipeline property owned by the Abu Dhabi Nationwide Oil Firm (ADNOC), which oversees 38 pipelines spanning 610 miles, the state-owned oil firm ADNOC mentioned final week.
“The addition of those high-caliber UAE traders units a brand new benchmark for main world and home institutional traders to deploy long-term fairness capital into key ADNOC vitality infrastructure property,” the UAE Minister of Business and Superior Expertise and ADNOC Group CEO Dr. Sultan Al Jaber mentioned in a press release.
The 2 have joined a consortium of yield-seeking world traders who took stakes within the ADNOC Fuel Pipelines subsidiary earlier this summer time. Brookfield Asset Administration, Singapore’s sovereign wealth fund GIC, New York-based International Infrastructure Companions (GIP), NH Funding and Securities, Italy’s Snam, and the Ontario Lecturers’ Pension Plan Board (OTPPB) have collectively invested $10.1 billion to achieve a 49% stake within the property.
It’s the second time the ADPF has entered an funding partnership for ADNOC’s infrastructure property. Final yr, the pension fund made a $300 million funding into a number of the agency’s oil pipelines. Over the summer time, ADNOC and ADQ additionally entered a three way partnership to fund industrial initiatives inside oil and pure gasoline complicated Ruwais Derivatives Park.
The UAE authorities is making an attempt to lift funds from traders after taking a battering from low rates of interest, low oil costs, and the continued disruptions from the pandemic. Traders are hoping pipeline corporations which might be usually paid excessive charges from their property will generate excessive dividends.
ADNOC will preserve possession and proceed working the pipeline property. The transaction is anticipated to shut later this month.
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Tags: Abu Dhabi Nationwide Oil Firm, Abu Dhabi Pension Fund, ADNOC, Brookfield Asset Administration, GIC