Company close to securing new $2bn loan
Abu Dhabi National Energy Company (Taqa) is close to securing a new $2bn loan at rates lower than the last time it raised money from banks in 2010.
Negotiations between Taqa and a group of local and international banks are understood to be at an advanced stage and the new deal could close soon, according to bankers familiar with the situation.
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.
One banker close to the company says: “Taqa want to be seen as repricing Abu Dhabi government risk and it looks like they will be able to do it.”
When Taqa arranged its 2010 loan, which also included a $1bn tranche that matures in 2015, it is understood to have priced that deal between 100-130 basis points.
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