Taqa plans to issue more bonds to finance plans

 

The Abu Dhabi National Energy Company, or Taqa, is planning to issue more bonds as it pushes ahead with a hectic investment drive abroad to become one of the largest energy ventures in the world, the company said on Thursday.

 

The Abu Dhabi Water and Electricity Authority (Adwea), which is partly owned by the government-controlled Taqa, has requested the bond issue, which could be used later to expand the company’s capital.

 

Taqa, which held a board meeting in Abu Dhabi on Thursday, said it would convene an extraordinary meeting again this month to consider the request. “We wish to inform you that the Board of Directors of Taqa… received a request from Adwea to add the issuance of instruments convertible into shares to the agency of the extraordinary general assembly meeting of the shareholders of the company, which will be held on April 16,” Taqa said in a letter to the Abu Dhabi Securities Market, where it is listed along with 50 other firms.

 

“The board resolved to await the receipt of a written request from Adwea regarding this matter and to reconvene on Monday to discuss this issue.”

 

Taqa, which is 75 per cent owned by Abu Dhabi Government, issued about $2 billion (Dh7.3bn) in bonds last year to finance its acquisition drive. Announcing its financial results for 2007 last month, the company 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.

“Last year was a pivotal year for Taqa as we started to build from our domestic power generation and desalination base to a truly global energy company with operations in nine countries.

 

“Over the past 12 months, we have diversified our business and expanded our footprints across the Middle East, Europe and North America with the acquisition of quality energy assets. I am pleased to confirm we remain on track to reach our aim of $60bn worth of assets by year-end 2012,” said Peter Barker-Homek, Chief Executive Officer of Taqa.

Founded in 2005, Taqa employs 2,300 people from 38 nations.