Taqa's Dh4.1bn bonds issue begins on Sunday

Abu Dhabi National Energy Company (Taqa) yesterday said it would start issuing Dh4.1 billion in convertible bonds from Sunday.

The company, which is locked in a major investment and acquisition drive, told shareholders that sales of the bonds would last until July 15 and would be through the National Bank of Abu Dhabi (NBAD).

"Shareholders who have received letters for the bonds can go to any NBAD branch with the necessary documents," Taqa said in a statement released through the Abu Dhabi Securities Exchange yesterday.

Taqa's board last month approved the bond issue to double its capital from Dh4.15bn to Dh8.3bn to fund its expansion drive.

The bonds would be converted into shares on September 1.

The government-controlled company has not yet clarified how many of the bonds would be sold to non-shareholders but in a statement two weeks ago, it said 75.1 per cent would be allocated for the Abu Dhabi Department of Water and Electricity, the Farmers Fund, and other investors.

The rest will be offered to Taqa shareholders except those who own less than 100 shares, according to the statement. The bonds will be issued in Dh1,000 denominations and each of them will convert into 500 shares at a conversion ratio of 2:1.

Taqa, which is 75 per cent owned by the Abu Dhabi Government, issued nearly $2bn (Dh7.34bn) in bonds last year to finance its acquisition drive.

Announcing its financial results for 2007 last month, it said its total revenues jumped by 72 per cent to a record Dh8.3bn, while net earnings shot up by 113 per cent to more than Dh1bn.

Net profits for the first quarter of 2008 also leaped by 525 per cent to Dh398 million from Dh64m in the same period of 2007.

Company officials said they expected another record year in 2008 following the completion of acquisition transactions finalised over the past year in some countries.



The numbers

75%: Owned by the Abu Dhabi Government, the company issued Dh7.3bn in bonds last year to finance its acquisition drive


Dh398m: Was the net profit recorded in 2008, a 525 per cent increase