Abu Dhabi's Taqa gets Dh8.5b loan facility for more expansion

Dubai: The Abu Dhabi utility company Taqa has taken a Dh8.5 billion term loan as it continues a massive expansion strategy, including - increasingly - in markets outside of the UAE.

The facility is a 2-year dirham-denominated floating-rate loan, with a one-year extension option. "Taqa intends to utilise the facility over time in a phased manner," said a statement.

The use of dirham funding 'aligns with Taqa's dirham-based income profile'. It also benefits from 'strong' local liquidity, with EIBOR offering a cost advantage over international benchmarks.

"The transaction enhances funding optionality, diversifies liquidity sources, and supports ongoing efforts to optimise the Group’s capital structure and maintain the financial flexibility required to deliver on Taqa’s long-term growth strategy," said the statement.

What's on Taqa's books now?

Taqa’s existing corporate funding includes a $20 billion Global Medium Term Note (GMTN) programme and a $3.5 billion revolving credit facility.

The latest loan facility 'reinforces Taqa’s financial readiness as it continues to execute on a strategic investment programme spanning domestic and international growth opportunities across power, water, and low-carbon energy'.

"This facility demonstrates our ability to access competitive funding in our domestic currency - while retaining the ability to draw down in line with our capital and investment needs," said Jasim Husain Thabet, Taqa’s Group CEO and Managing Director.

"The terms reflect the strength of our credit profile and the trust placed in us by our banking partners, ensuring we have the right financial foundations to continue delivering reliable and sustainable power and water."

Emirates NBD Bank and First Abu Dhabi Bank were mandated to act jointly as bookrunner, mandated leader arranger and coordinator. Mashreq Bank acted as Mandated Lead Arranger for the term loan facility.