Utilities Middle East

TAQA in $290mn bond placement

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

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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.”

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