Abu Dhabi National Energy Company (Taqa) is set to complete a $3bn loan deal on 16 December, according to bankers close to the deal.
The deal is understood to have been oversubscribed in both the three- and five-year portion. Banks were given until 29 November to respond to the request to fund the deal.
The loan is split between a $2bn three-year tranche and $1bn five-year tranche. Banks were able to commit to either tranche in dollars or dirhams, to help attract local banks who are more liquid in the local currency.
Part of the proceeds will be used to refinance an existing $3.15bn loan that matures in August 2011. That deal paid a margin of 65 basis points above the London interbank offered rate. It is still unclear what the margin on the new deal will be.
France’s BNP Paribas; the UK’s HSBC, Standard Chartered and Royal Bank of Scotland; the US’s Citigroup; and Bank of Tokyo Mitsubishi were appointed to arrange the deal. Talks with banks started in late October.
Taqa is 75 per cent owned by the government of Abu Dhabi.