Abu Dhabi’s state oil company, the Abu Dhabi National Oil Company (ADNOC), is set to raise $1.5 billion from its first-ever sale of Islamic bonds, known as sukuk. This information was revealed in a document reviewed by Reuters on Monday.

The sukuk will be issued at a rate of 60 basis points above U.S. Treasuries. ADNOC is executing this sale through its primary debt capital markets unit, ADNOC Murban. The funds raised will be utilized for general corporate purposes.

ADNOC has already received over $3.85 billion in demand for these 10-year Islamic bonds. This comes after the company successfully raised $4 billion from conventional bonds back in September 2023, marking a significant move since the establishment of ADNOC Murban over two and a half years ago. Chief Investment Officer Klaus Froehlich indicated that ADNOC aims to access the market for between $3 billion and $5 billion annually, excluding alternative financing like sukuk.

Standard Chartered will serve as the sole global coordinator for this sukuk sale. Additional support comes from several banks, including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Morgan Stanley, and MUFG, all of which are active bookrunners for the transaction.