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29 March 2024

Taqa secures $3bn loan

Standard and Poor's has awarded Taqa "A" rating with stable outlook (FILE)

Published
By Staff

The Abu Dhabi National Energy Company (Taqa), a publicly listed company on the Abu Dhabi Securities Exchange, has secured a $3 billion revolving credit facility which will be used for general corporate purposes and will replace its existing $3.15 billion revolving credit facility, signed in August 2008.

Doug Fraser, Chief Financial Officer of Taqa, said: “We saw a high level of interest in the syndication of the revolving credit facility from banks around the world resulting in the facility being oversubscribed.

The strong interest has allowed us to keep pricing tight and maintain flexibility. All in all, this is a highly successful refinancing process which allows us to extend the bank facility for another three to five years at very attractive pricing.”

The $3 billion facility from 20 banks comprises $2 billion in a three year revolving credit tranche and $1 billion in a five year revolving tranche. 

The bookrunners of the facility were The Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, HSBC, Royal Bank of Scotland and Standard Chartered Bank. Initial Mandated Lead Arrangers were Bank of America Merrill Lynch and Sumitomo Mitsui Banking Corporation.

The remaining banks in the syndication were DnB NOR Bank, Intesa Sanpaolo, Natixis, Société Générale, WestLB, Nomura, Europe Arab Bank, Maybank, Bank of Taiwan, Chang Hwa Bank and Commercial Bank (Taipei), Taiwan Co-op Bank and United Taiwan Bank. BTMU have also acted as Coordinator and Facility Agent.

Standard and Poor's ratings agency earlier this week assigned Taqa an 'A' rating with stable outlook, on an "extremely high" likelihood of government support for the company.