Today's Edition
ABU DHABI (ALETIHAD)
Abu Dhabi National Energy Company (TAQA) said it has secured a Dh8.5 billion corporate term loan to boost liquidity and advance its growth strategy.
The two-year dirham-denominated floating-rate facility carries a one-year extension option, will be drawn down in phases, and supports TAQA’s 2025 funding plan, a statement from the state energy company said.
TAQA said using dirham funding aligns with its dirham-based income profile and benefits from strong local liquidity, with EIBOR offering a cost advantage over international benchmarks. Emirates NBD Bank and First Abu Dhabi Bank were mandated to act jointly as Bookrunner, Mandated Leader Arranger and Coordinator, while Mashreq Bank acted as Mandated Lead Arranger for the facility.
Emirates Interbank Offered Rate (EIBOR) is the UAE’s dirham benchmark rate set daily by the Central Bank and is widely used to price Dirham-denominated loans.
“This facility marks another step in delivering on TAQA’s long-term growth strategy, reinforcing our ability to maintain a strong and flexible balance sheet to support future investments,” said Jasim Husain Thabet, Group Chief Executive Officer and Managing Director. “This facility demonstrates our ability to access competitive funding in our domestic currency, while retaining the ability to draw down in line with our capital and investment needs. The terms reflect the strength of our credit profile and the trust placed in us by our banking partners, ensuring we have the right financial foundations to continue delivering reliable and sustainable power and water to the communities we serve.”
TAQA said the transaction enhances funding optionality, diversifies liquidity sources and supports ongoing efforts to optimise its capital structure. The facility offers greater flexibility than other funding sources by allowing drawdowns to be aligned with cash flow and investment schedules. The two-year tenor also fits the Group’s maturity profile, with no corporate debt maturities scheduled in 2027.
The new loan complements TAQA’s existing corporate funding framework, including a $20 billion Global Medium Term Note programme and a $3.5 billion revolving credit facility, providing a well-balanced and diversified capital structure. TAQA said the added liquidity reinforces its readiness as it executes a strategic investment programme spanning domestic and international opportunities across power, water and low-carbon energy.
