Abu Dhabi National Energy Company (Taqa) has approved the issuance of Dh4.15 billion convertible bonds for shareholders to increase its capital and fund ongoing expansion plans, the company said yesterday.
The board, which met on Monday, set a period of 10 days starting on July 1 for the issuance of the bonds and September 1 for their conversion into shares.
"Please be informed that the board of directors has resolved to issue convertible bonds in the amount of Dh4.15 billion and to offer such bonds primarily to the shareholders of Taqa registered on June 16," the company said in a letter sent to the Abu Dhabi Securities Exchange (ADX).
The board further resolved that each of the bonds will be issued in a denomination of Dh1,000 and will convert into 500 shares at a conversion ratio of 2:1. The shareholders will be notified of their right to subscribe to such bonds.
In April, Taqa said it was considering issuing convertible bonds to finance its ongoing investment drive and increase capital to cope with a surge in activity, mainly acquisitions in Western countries. The issuance of bonds was at the request of the government-controlled Abu Dhabi Water and Electricity Authority (Adwea), in which Taqa is a major shareholder.
Taqa issued nearly $2bn (Dh7.34bn) in bonds last year to finance acquisitions.