ADNOC Murban Sukuk Limited has launched its inaugural Shari’a-compliant trust certificates under the newly formed International Sukuk Programme, marking a significant step in the UAE’s debt capital markets. The $1.5 billion sukuk was issued on the London Stock Exchange’s International Securities Market, with a maturity date of May 6, 2035 and a coupon rate of 4.75 percent, payable semi-annually. The obligor on the notes is ADNOC Murban RSC, a wholly owned subsidiary of ADNOC, serving as the primary issuing and debt capital markets entity for the ADNOC Group. The deal underscores ADNOC Murban’s ongoing strategy to diversify funding sources and bolster liquidity through Shari’a-compliant instruments.
Deal overview and key terms
ADNOC Murban Sukuk Limited issued Shari’a-compliant trust certificates as part of its broader International Sukuk Programme, designed to access global Islamic investor markets and enhance capital-raising flexibility for the ADNOC Group. The sukuk was priced on April 28, 2025, with investors showing strong appetite from around the world, a testament to ADNOC’s high credit quality and robust performance across varying commodity cycles. The notes carry a coupon of 4.75 percent per year, distributed semi-annually, ensuring predictable income for investors seeking Shari’a-compliant, dollar-denominated fixed income.
The transaction stands out for several reasons. It achieved one of the lowest-ever new-issue premiums for Shari’a-compliant securities in the region, highlighting a favorable supply-demand balance and strong investor confidence in the credit quality of the issuer. It also marked the tightest-ever corporate U.S. dollar 10-year spread in the regional market, signaling exceptional pricing discipline and broad market demand for Abu Dhabi-based exposure within Islamic finance frameworks. The deal’s size, structure, and pricing reflect ADNOC Murban’s ability to access favorable market conditions while adhering to Shari’a requirements.
Net proceeds from the sukuk will go to ADNOC Group for general corporate purposes, supporting the group’s overarching financial flexibility and investment capacity. This use of proceeds aligns with ADNOC Murban’s strategy of securing diversified funding streams to support ongoing operations, capital expenditure, and strategic initiatives across the ADNOC ecosystem. The instrument thus serves both funding and strategic objectives, allowing ADNOC Group to optimize its balance sheet and maintain resilience through varied market environments.
The issuance complements ADNOC Murban’s broader funding strategy, building on the group’s earlier debt issuance activity. Notably, this sukuk follows ADNOC Murban’s inaugural global medium-term note (MTN) issuance in September 2024 and a green financing facility secured in June 2024. The progression from MTN to green financing and now to a Shari’a-compliant sukuk demonstrates a diversified debt program designed to meet funding needs across multiple investor bases and sustainable financing themes.
Use of proceeds and strategic implications
- General corporate purposes: The net proceeds will be used by the ADNOC Group to support general corporate activities, providing liquidity and financial flexibility to meet ongoing operating and strategic needs.
- Funding diversification: The sukuk expands ADNOC Murban’s funding toolkit, enabling access to the global Islamic finance community and complementing conventional debt programs.
- Alignment with sustainability goals: The green financing facility previously secured in 2024 demonstrates ADNOC’s broader commitment to sustainable finance, with the current sukuk reinforcing the group’s emphasis on diversified, resilient capital structures.
Market reception, ratings, and structuring
ADNOC Murban Sukuk Limited received strong demand from global Islamic investors, reflecting confidence in ADNOC’s high credit quality and robust performance across commodity cycles. The pricing and demand dynamics indicate that investors view ADNOC as a stable, creditworthy counterparty in a market that values adherence to Shari’a principles, solid governance, and consistent cash generation. The deal’s favorable reception is also amplified by its status within the regional market as one of the tightest spreads for a corporate U.S. dollar 10-year instrument in the Shari’a-compliant space.
Credit ratings and alignment
ADNOC Murban holds credit ratings of Aa2 from Moody’s Investors Service and AA from Standard & Poor’s (S&P) and Fitch Ratings, mirroring the ratings of its ultimate shareholder, the Government of Abu Dhabi. The sukuk itself is rated Aa2 by Moody’s and AA by Fitch, reflecting alignment with the sovereign-linked credit profile and reinforcing investor confidence in the deal’s credit quality and structural integrity. These ratings underpin the structure’s resilience and support favorable pricing dynamics in a market that prizes transparency and reliability in debt instruments tied to government-backed entities.
Issuer and issue ratings context
- ADNOC Murban’s sovereign-aligned ratings provide a robust anchor for the sukuk’s credit story, helping to attract a wide investor base seeking alternative Shari’a-compliant exposures with high credit quality.
- The alignment between the issuer’s ratings and the sukuk’s rating adds a layer of credit comfort, reinforcing the attractiveness of the instrument in a region renowned for complex debt structures and Islamic-finance innovations.
Transaction banking and distribution
Standard Chartered Bank served as the sole global coordinator and joint sukuk structuring bank for the deal, ensuring cohesive execution and robust structuring aligned with Shari’a requirements. The active bookrunners and joint sukuk structuring banks included Abu Dhabi Islamic Bank, Dubai Islamic Bank, and First Abu Dhabi Bank, showcasing regional leadership in Islamic finance and access to broad investor networks. Additional active bookrunners were Emirates NBD Capital, Abu Dhabi Commercial Bank, MUFG, and Morgan Stanley, with passive bookrunners including KFH Capital, Sharjah Islamic Bank, SMBC, and the Islamic Corporation for the Development of the Private Sector (ICD). This mix of regional and international banks underscores a balanced, globally accessible distribution framework designed to maximize reach among Islamic-investment communities while maintaining strong regional sponsorship and support.
Structural context and funding strategy
The sukuk issuance is a strategic component of ADNOC Murban’s broader debt-management and funding framework. It demonstrates a deliberate approach to broadening funding channels beyond conventional bank lending and standard bond markets, embracing Islamic finance to diversify investor participation and risk profiles. By leveraging an International Sukuk Programme, ADNOC Murban aims to:
- Access large, stable pools of capital within the Islamic finance ecosystem.
- Provide a Shari’a-compliant funding vehicle that aligns with the issuer’s governance and compliance standards.
- Enhance liquidity and debt-service flexibility through longer-tenor instruments, thus contributing to a more balanced debt maturity profile.
The deal also reflects ADNOC’s ongoing commitment to responsible and diversified financing. The company’s previous milestones—the inaugural global MTN in September 2024 and a green financing facility secured in June 2024—illustrate an integrated capital-allocation strategy that prioritizes diversity, sustainability, and resilience. The current sukuk fits squarely into this trajectory, reinforcing ADNOC Murban’s capability to execute complex transactions that meet investor expectations for clarity, transparency, and structural integrity.
Implications for debt maturity and cost of funding
- Maturity extension: The 2035 maturity provides a long-dated funding option, aligning with the strategic goal of extending debt maturities to reduce refinancing risk.
- Price discipline: The notably tight spread and low new-issue premium reflect a favorable cost of debt, driven by strong investor demand and ADNOC’s high credit quality. This translates into improved overall financing economics for the ADNOC Group.
- Diversified investor base: By tapping global Islamic investors, ADNOC Murban broadens its funding ecosystem, reducing reliance on a single investor class and enhancing market resilience.
Key participants and ecosystem dynamics
Issuer and obligor
- Issuer: ADNOC Murban Sukuk Limited, a special purpose vehicle established to issue Shari’a-compliant trust certificates under the International Sukuk Programme.
- Obligor: ADNOC Murban RSC, a wholly owned subsidiary of ADNOC, serving as the primary issuing and rated entity within ADNOC’s debt-capital-markets framework.
Ratings and governance
- Moody’s: Aa2 rating for the sukuk; the issuer’s overall rating aligns with the Abu Dhabi government’s credit profile.
- S&P: AA rating for the issuer; Fitch: AA rating for the issuer; reflecting sovereign-backed confidence and structural security.
- This rating suite reinforces investment hygiene and provides a credible risk assessment framework for global investors.
Banks and syndicate dynamics
- Global coordinator and structuring: Standard Chartered Bank (sole global coordinator and joint Sukuk structuring bank).
- Active bookrunners and structuring banks: Abu Dhabi Islamic Bank, Dubai Islamic Bank, First Abu Dhabi Bank.
- Active bookrunners: Emirates NBD Capital, Abu Dhabi Commercial Bank, MUFG, Morgan Stanley.
- Passive bookrunners: KFH Capital, Sharjah Islamic Bank, SMBC, ICD.
- The composition demonstrates a balanced mix of regional leadership and global financial strength, with a clear focus on Islamic-finance expertise and cross-border distribution capabilities.
Strategic significance and sector context
The ADNOC Murban sukuk marks an important milestone for Abu Dhabi’s debt-capital markets and for the broader Islamic-finance sector in the region. By issuing a Shari’a-compliant instrument on the London Stock Exchange, ADNOC Murban signals confidence in the United Arab Emirates’ role as a hub for sophisticated, globally accessible Islamic finance products. The pricing clarity, strong investor demand, and alignment with Abu Dhabi’s sovereign credit profile contribute to a positive market perception of the UAE’s ability to mobilize large-capital markets through compliant structures that meet international standards and investor expectations.
In the context of the energy sector and commodity cycles, ADNOC’s strategy to diversify funding sources is noteworthy. The Abu Dhabi government-backed ratings and ADNOC’s demonstrated cash-generating capacity help reassure investors about the issuer’s resilience amid fluctuating energy prices and global macroeconomics. The combination of a long-tenor instrument, strong governance, and a diversified bank syndicate supports a robust issuance framework that can be leveraged for future Sukuk and conventional debt issuances.
Governance, compliance, and market mechanics
The deal underscores the growing sophistication of Shari’a-compliant debt issuance in credible, western-listed markets. The use of a dedicated SPV, a trust-certificates structure, and a formal International Sukuk Programme demonstrates how large corporate groups can cater to Islamic-investor mandates while maintaining strong governance, disclosure standards, and risk management. The reporting and compliance standards associated with the issuer and obligor, along with the ratings framework, contribute to a transparent and well-regulated market environment. Investors benefit from a clearly defined structure, predictable cash flows, and alignment with Shari’a principles, which together generate confidence and credibility in the instrument’s long-term value proposition.
Conclusion
ADNOC Murban Sukuk Limited’s inaugural Shari’a-compliant trust certificates, issued under the International Sukuk Programme, represent a landmark achievement for ADNOC and the UAE’s Islamic-finance market. The $1.5 billion offering on the London Stock Exchange, with a 4.75 percent coupon and 2035 maturity, reflects strong global demand from Islamic investors and marks a notable achievement in pricing discipline for regional corporate debt. The deal’s tight spread, low new-issue premium, and the alignment of sukuk and issuer ratings reinforce investor confidence in ADNOC Murban’s credit quality and governance.
This issuance continues ADNOC Murban’s strategic funding trajectory, following the group’s earlier MTN issuance in 2024 and a green-financing facility secured in 2024, thereby expanding the group’s capital-structure toolkit and reinforcing its ability to meet general corporate needs through diversified, compliant financing channels. The collaboration of a robust syndicate of global and regional banks—led by Standard Chartered as global coordinator and structuring bank, with a wide slate of active and passive bookrunners—highlights the enduring strength and appeal of Shari’a-compliant instruments in the international debt-capital markets. As ADNOC Murban and the ADNOC Group navigate ongoing energy-market dynamics, this sukuk stands as a strategic pillar to support sustainable growth, liquidity, and resilience across multiple market cycles.