Adnoc delays Chinese ‘dim sum’ bonds

Abu Dhabi National Oil Company has reportedly deferred its first yuan-denominated bond offering because of the Iran conflict.

Adnoc was seeking the “right time to secure lower borrowing costs, but the process has been paused”, Bloomberg reported, quoting unidentified sources.

Borrowers tend to adjust their plans in line with market conditions, the report said.

Last month the news agency reported that Adnoc was looking to raise up to 14 billion yuan ($2 billion) through so-called “dim sum” bonds.

Such bonds are issued in Hong Kong and do not fall under the stringent regulations imposed in mainland China. 

Adnoc declined to comment when approached by Bloomberg.

Crude prices jumped 7 percent on Monday after US-Israeli strikes killed Iran’s supreme leader, Ayatollah Ali Khamenei, on Saturday. 

Citi has forecast Brent to trade between $80 and $90 this week. 

Opec+ members – which include Saudi Arabia, Iraq, UAE, Kuwait, Oman and Russia – agreed to increase production by a combined 206,000 barrels per day next month as part of the unwinding of previous output cuts.