Taqa prepares to price bond issue

05 December 2012

Tranches for Taqa bond issue will mature in 2018 and 2023

Abu Dhabi National Energy Company (Taqa) is preparing to price a two-tranche dollar-denominated bond issue maturing in 2018 and 2023.

MEED reported in late November that Taqa was close to securing a new $2bn loan at rates lower than the last time it raised money from banks in 2010.

The new loan will replace a $2bn deal that matures in December 2013 with two $1bn facilities of three and five years in duration. Both will be priced at under 100 basis points, with pricing starting at 75 basis points and stepping up to a higher rate depending on how much of the loan is drawn.

France’s BNP Paribas, US-based Citigroup, the local National Bank of Abu Dhabi and the UK’s Standard Chartered are arranging the deal.

When Taqa arranged its 2010 loan, which also included a $1bn tranche that matures in 2015, it is understood to have priced that deal at between 100-130 basis points.

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