TAQA in $290mn bond placement

This follows a 17-year Power Purchase Agreement extension option for TAQA Morocco’s Jorf Lasfar Power Plant

Abu Dhabi National Energy Company PJSC (“TAQA”, the “Company” or the “Group”) announced one of Morocco’s largest private bond placements in 2020, reinforcing the Company’s position in the Moroccan energy market, where its subsidiary, TAQA Morocco, generates electricity to meet more than 40% of the country’s electricity demand.

The landmark transaction was delivered through TAQA Morocco’s finalisation of a bond issuance by a private placement for $293.8mn, which diversifies TAQA Morocco’s funding base.

The bond placement was substantially oversubscribed for by qualified investors, providing the company an opportunity to further optimize its capital structure and create value for its shareholders. The transaction resulted in a reduction in debt cost of over 20% and an extension to its debt maturity date by 11 years, to March 2038.

“Our bond placement in Morocco underscores the critical role that our Generation business plays in our international growth strategy. As a regionally leading, fully integrated utilities champion, TAQA remains a trusted utility partner in Morocco through a proven track record of meeting a significant portion of the country’s electricity demand,” said Jasim Husain Thabet, Group CEO and MD of TAQA Group. “Through our scale, agility and financial strength, TAQA will continue to drive smart, selective growth, building on our existing global portfolio.”