Abu Dhabi: Abu Dhabi's energy giant Taqa has generated Dh1.08 billion for its Morocco operations through a bond placement. The bond placement was substantially oversubscribed, and will allow Taqa Morocco to reduce its debt costs by more than 20 per cent. It will also extend its debt maturity to 11 years (March 2018).
Taqa's Morocco entity generates 40 per cent of the North African country's electricity demand. “Our bond placement in Morocco underscores the critical role that our [power] generation business plays in our international growth strategy," said Jasim Husain Thabet, Group CEO and Managing Director of Taqa Group.
"Through our scale, agility and financial strength, Taqa will continue to drive smart, selective growth, building on our existing global portfolio and steering the group towards opportunities that will drive value-creation for our shareholders, business partners, customers and the communities we serve.”
The bond issuance follows the option to extend the Power Purchase Agreement (PPA) between TAQA Morocco and the electricity off-taker, Office National de l'Electricité et de l'Eau Potable (ONEE), for an additional 17 years for units 1-4 of its Jorf Lasfar Power Plant. This extends the "company’s debt repayment profile," a statement said.
TAQA Morocco’s 2,056 MW Jorf Lasfar Power Plant generates electricity to serve the needs of around 18 million people annually. It is also one of the largest power plants of its kind in the MENA region.