Best-in-Class Treasury – Middle East – WINNER
ADNOC
The Abu Dhabi National Oil Company (ADNOC) has reimagined its treasury operations with a dual focus on automation and market expansion. By digitising its cash management and securing a landmark $4bn bond issuance, the company is redefining what best-in-class treasury looks like in the Middle East.
For years, ADNOC’s cash operations were constrained by fragmented systems, manual reconciliations, and a reliance on physical cash handling, which – as many large corporations will understand – resulted in inefficiencies and high operational costs.
Recognising the need for a more agile and transparent treasury function, a digital overhaul of cash management processes was undertaken. The introduction of point-of-sale (POS) machines across medical and remote sites enabled secure and efficient revenue collection. At the same time, the integration of SAP Concur facilitated automated expense approvals and reconciliation, streamlining processes, and enhancing financial visibility. AI-powered cheque-clearing solutions further improved efficiency, reducing processing times and ensuring greater financial accuracy.
This transition has significantly reduced human error, accelerated reconciliation operations, and provided real-time oversight of financial transactions. By integrating these digital tools into a single, seamless system, the company has not only enhanced operational efficiency but also strengthened compliance and internal financial controls, ensuring greater security and accuracy in every transaction.
Undeniably, the impact of this transformation has been profound. Manual cash handling has been reduced by 95%, freeing up valuable resources and improving security. Automated reconciliations and approvals have saved more than 150,000 man-hours, while AI-driven solutions have enabled ADNOC to collect AED118m in revenue digitally. Meanwhile, real-time financial oversight through intelligent dashboards has enhanced decision-making capabilities, ensuring a more proactive approach to treasury management.
A bond like no other
Alongside these operational improvements, ADNOC also made a landmark debut in the international bond market with a $4bn issuance. This transaction, structured through ADNOC Murban, marked a pivotal shift in the company’s financial strategy.
By issuing a multitranche offering with maturities of five, 10, and 30 years, ADNOC successfully diversified its funding sources and reinforced its financial standing. The market response was emphatic. ADNOC Murban’s bond sale attracted an orderbook exceeding $14.3bn, an almost four-fold oversubscription, reflecting extraordinary investor confidence. The pricing set new records:
- Tightest spread ever achieved by a debut Central and Eastern Europe, Middle East and Africa (CEEMEA) corporate issuer for a 30-year tranche in the region
- Most competitive pricing for a five- and 10-year tranche in a decade
- Tightest spread to Abu Dhabi sovereign debt for a five-year tranche by any Abu Dhabi government-related entity (GRE)
To deliver an issuance of this scale, ADNOC also partnered with some of the world’s leading financial institutions. J.P. Morgan and Morgan Stanley acted as global co-ordinators, while Bank of America Securities, Citi, and First Abu Dhabi Bank led the bookrunning. HSBC, Abu Dhabi Commercial Bank, Mizuho, and SMBC Nikko played supporting roles, ensuring that ADNOC’s offering reached the right mix of investors across North America, Europe, the Middle East, and Asia.
Facing the future
By integrating AI and automation into its treasury functions while simultaneously securing a landmark bond issuance, ADNOC has demonstrated its ability to balance operational efficiency with forward-looking capital management. And throughout both projects the treasury team demonstrated an innovative spirit and great resilience, making them deserving winners of the Best-in-Class Treasury – Middle East Award.
