Alpha Dhabi May Tap Debt Market for $2.2 Billion Investment Plan
Alpha Dhabi to Invest $273 Million in Adnoc Chemicals Project
(Bloomberg) -- Alpha Dhabi Holding PJSC, one of the United Arab Emirates’ biggest public companies by value, may tap debt markets as part of plans to invest as much as 8 billion dirhams ($2.2 billion) in sectors ranging from hospitality to petrochemicals.
The firm is looking for opportunities to deploy capital in private and public assets in the country as part of its new strategy, Chief Executive Officer Hamad Al-Ameri said in response to questions from Bloomberg. It will also explore investments across the Middle East and North Africa, the U.S., India and Pakistan.
“The investments will be financed by a combination of debt and equity, depending on the nature of the particular investment profile,” Al-Ameri said. “This includes tapping into debt markets at the appropriate time to take advantage of favorable interest rates where necessary.”
In particular, Alpha Dhabi is looking at hospitality assets that have been resilient during the pandemic as well as petrochemicals and clean energy businesses, he said.
Chemical Investment
As part of the plans, Alpha Dhabi said on Sunday it will invest about 1 billion dirhams in Abu Dhabi Chemicals Derivatives Company RSC Ltd., known as Ta’ziz. Abu Dhabi National Oil Co., the nation’s main oil producer, runs the Ta’ziz chemicals park at Ruwais on the UAE’s Persian Gulf coast along with government-owned investment firm ADQ.
Eight local investors will buy as much as 20% of a $4 billion portfolio of potential petrochemical projects at the Ta’ziz industrial complex, Adnoc said last week.
The companies expect the tie-up to develop into a “long-term contributor not only to the nation’s economy, but to the regional and global competitiveness of Alpha Dhabi Holding, Abu Dhabi and the UAE,” Alpha Dhabi’s Al-Ameri said in a separate statement.
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