Taqa in Dh4bn sukuk programme

In a sparsely worded statement, Abu Dhabi National Energy Company (Taqa) on Sunday announced that it was setting up a Malaysian Ringgit (MYR) 3.5 billion (Dh4bn) sukuk programme to diversify funding sources.

“Once appropriate regulatory approval is received, the program will allow Taqa to issue quickly if and when the market conditions are optimal,” the statement said.

Stephen Kersley, Taqa’s CFO had acknowledged in August, while announcing the firm’s half-yearly results, that Taqa was “looking extensively” at the ringgit market for a potential bond sale. On the back of higher oil prices, the Abu Dhabi-based energy giant had announced a profit surge of 154 per cent to Dh435 million in the second quarter of the year.

Carl Sheldon, General Manager of Taqa, had said his company’s performance during the second quarter of this year had been strong both operationally and financially.

“A consistent and solid operational performance combined with a more favourable commodity pricing has delivered a net result for the first six months of 2011 of which we can be proud,” Sheldon said in August.

According to media reports, the energy company plans to invest $2bn every year through 2013 and has no need to refinance until October 2012.

Taqa spent $920m in the first half of the year, the CFO had announced. According to the company’s results for the first six months of 2011, Taqa’s liquidity remains strong with over Dh4bn in cash and cash equivalents, along with Dh11.7bn in undrawn facilities, at the end of the second quarter. 

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