Taqa appoints six banks to raise $3 billion

Abu Dhabi National Energy Company (Taqa) has appointed banks to lead a $3 billion syndicated loan to refinance existing loan,

The  mandated banks are The Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Citi, HSBC, The Royal Bank of Scotland and Standard Chartered Bank to arrange the revolving credit facility. The Bank of Tokyo-Mitsubishi will act as facility agent.

Bank of America Merrill Lynch and Sumitomo Mitsui Banking Corporation are designated initial mandated lead arrangers.    

The facility is structured into multi-currency three and five year revolving credit tranches. The facility will be used for general corporate purposes and will replace the existing $ 3.15 billion revolving credit facility signed in August 2008, the company said in a statement on Monday.

Reuters last week reported that the three-year facility pays over 100 basis points (bps) over Libor all-in, while the five-year facility pays under 200 bps all-in, another banking source told Thomson Reuters LPC previously.

Last week, Taqa announced appointment of industry veteran David Cook as the new executive officer and head of Upstream to lead its global upstream division.

Taqa's crude oil and natural gas production averaged more than 132,000 barrels of oil equivalent per day in the H1 of 2010 representing more than half of the Group’s revenues for the period. The upstream portfolio had approximately 574 million barrels of oil equivalent of proven and probable reserves at December 31st 2009.

Taqa shares remained unchanged in the early morning trade on Monday.

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