Day: January 25, 2022

ABU DHABI, Abu Dhabi National Oil Company (ADNOC) announced today that it has created a new, wholly owned subsidiary, ADNOC Murban RSC Ltd (ADNOC Murban), which will become the primary debt capital markets issuing and rated entity for ADNOC Group.

ADNOC Murban is expected to be rated “AA” by Standard & Poor’s (S&P), “Aa2” by Moody’s Investor Services (Moody’s) and “AA” by Fitch Ratings (Fitch) – aligned with ratings assigned to ADNOC’s shareholder, the Emirate of Abu Dhabi.

These strong ratings reflect ADNOC’s conservative and robust financial profile, resilient operations, and the low cost and low carbon intensity of ADNOC Murban’s onshore production.

ADNOC expects to maintain the “AA” instrument rating provided by Fitch of the 2024 ADNOC Distribution exchangeable bonds (ISIN: XS2348411062).

Separately, ADNOC has requested the withdrawal of its Group-level credit rating, first assigned by Fitch in February 2019, given the establishment of ADNOC Murban as ADNOC’s primary capital markets issuing and rated entity.

ADNOC Murban intends to closely monitor market conditions and explore potential funding opportunities.

Source: Emirates News Agency

ABU DHABI, In his capacity as Ruler of Abu Dhabi, President His Highness Sheikh Khalifa bin Zayed Al Nahyan has issued a new family business ownership governance law that further strengthens the sector’s contribution to the economy and facilitates the transition to successive generations.

The new law aims to further enhance the family-owned business legislative ecosystem by adopting a more flexible and sustainable economic model, in line with best international governance practices. The law also aims to boost family businesses’ contribution to the diversification and growth of the economy.

The new family business ownership governance law empowers owners of family business to: prevent selling of shares or dividends to individuals or companies outside the family, and to require prior approval from family partners before a shareholder sells their respective equity stake to a non-family member.

Owners of family businesses can also issue family-owned shares with weighted voting rights and prevent the pledging of family-owned businesses as encumbered assets, to avoid expropriation.

The current law is not applicable to family-owned businesses where non-family members own more than 40 per cent of shares.

The provisions of this law are applied to family-owned businesses on an opt-in basis for owners or co-founders by submitting a request to the Abu Dhabi Department of Economic Development (ADDED), which will issue the executive and administrative regulations of the new law from March 2022.

Commenting on the new law, Mohamed Ali Al Shorafa, Chairman of ADDED, said, “This law is a major pillar in enhancing the vital role played by these businesses in driving economic development. It also provides a legislative framework to ensure the growth and sustainability of family-owned companies in line with the evolving business sector, since it allows ownership by non-family members up to 40 per cent of the capital. This will support the expansion and development of family-owned businesses.”

He added, “Family-owned businesses in Abu Dhabi continue to contribute to economic diversification and the knowledge-based economy, equipped with decades-long experience in the market, strong resilience, and experience in partnering with government entities, as well as investing in sectors targeted by strategic initiatives launched by the emirate of Abu Dhabi.”

Source: Emirates News Agency

ABU DHABI, Masdar, one of the world’s leading renewable energy companies, and W Solar Investment, a subsidiary of Alpha Dhabi Holding, and a development and investment company in the solar energy industry, have formed a joint venture company (JVC) to develop clean energy projects in a range of geographies.

The new company, MW Energy Limited, will act as a development platform, focusing initially on a pre-identified pipeline of projects, while also exploring new opportunities under the guidance of both owners. Abu Dhabi-based Chimera Capital advised W Solar on the JVC.

The shareholder agreement establishing the JVC was signed by Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, and Syed Basar Shueb, Vice Chairman of Alpha Dhabi Holding, at a ceremony held recently in Masdar City.

Mohamed Jameel Al Ramahi, CEO of Masdar, said, “Masdar is committed to supporting the UAE’s sustainable development and to maintaining the nation’s leading role in the global energy transition. Having more than tripled the capacity of our renewable energy portfolio within three years, we are committed to extending our reach even further, by entering new markets and by partnering with other Abu Dhabi entities to become a global leader in clean energy. Through this JVC, we will be able to respond faster to market opportunities, extend our footprint into new geographies, and support more nations in their climate action.”

The JVC will focus initially on the development of pre-identified projects, primarily in Africa and in the Commonwealth of Independent States (CIS) region – Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan and Georgia – as well as other geographies. The total capacity of these pre-identified projects is more than 8 gigawatts (GW), and the JVC will also explore and develop other opportunities to meet the shareholders’ clean energy objectives.

MW Energy will also support the Etihad 7 innovation programme, a UAE-led initiative to secure funding for renewable energy projects in Africa that aims to supply clean electricity to 100 million people by 2035.

The programme will raise funds from the public and private sectors for clean energy investment, with guidance and coordination from the Ministry of Foreign Affairs and International Cooperation (MoFAIC) and Office of the Special Envoy for Climate Change.

Source: Emirates News Agency