Taqa raises Samurai loan to refinance bond

17 April 2014

Abu Dhabi firm Taqa taps new source of liquidity

Abu Dhabi-based energy and water company Taqa has raised a $200m-equivalent (¥20.4bn) Japanese yen-denominated Samurai loan.

A samurai loan is a facility raised by a non-Japanese company issued in Tokyo and subject to Japanese regulations.

The five-year loan was arranged by Bank of Tokyo-Mitsubishi UFJ at a competitive 60 basis points over Japanese Yen Libor and fully swapped into US dollars by Mitsubishi UFJ.

The funds will be used to refinance part of the energy company’s forthcoming $1.2bn bond maturity and is said to provide a “new pool of liquidity”, for the company, according to Stephen Kersley, chief financial officer (CFO) at Taqa.

The energy company released its annual financial results in late March, when it announced an AED2.52bn ($687m) loss recorded in 2013 due to the restructuring of the company’s problematic North American assets.

Due to this loss, Taqa decided to not pay out a dividend for 2013.

Taqa’s underlying revenue reached AED21.15bn in 2013, an increase of 3 per cent on the previous year.

 

 

 

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.