Abu Dhabi – The National Energy Company of Abu Dhabi has announced that it has secured an institutional loan amounting to 8.5 billion AED. This transaction reinforces the company’s commitment to maintaining a robust and flexible capital structure to support its long-term growth strategy and capital expenditure planning.
The financing deal comprises a two-year loan denominated in AED with a variable interest rate, offering the possibility of a one-year extension. The company plans to utilize these funds in stages.
The financing was arranged with Emirates NBD and First Abu Dhabi Bank acting as joint bookrunners and mandated lead arranger coordinators, while Mashreq Bank served as the mandated lead arranger for the loan.
Utilizing AED-financing aligns with the group’s revenue structure, which is also denominated in AED, and capitalizes on the robust liquidity levels in the local financial market, where the Emirates Interbank Offered Rate (EIBOR) offers a cost advantage over international benchmark rates.
This transaction enhances the company’s financing options and diversifies its liquidity sources, supporting ongoing efforts to improve the group’s capital structure while maintaining the financial flexibility necessary for long-term growth strategies.
Jasim Husain Thabet, the group’s CEO and managing director, stated: “Securing this loan marks another significant step in our pursuit of Taqa’s long-term growth strategy, bolstering our ability to maintain a strong and flexible capital structure that supports future investments.”
He further noted that the financing reflects their capability to obtain competitive financing in their local currency, while retaining the ability to draw according to capital and investment needs.
Additionally, the terms of this financing demonstrate the strength of their credit rating and the trust placed in them by banking sector partners, ensuring a solid financial foundation to continue providing reliable and sustainable electricity and water services to the communities they serve.
This funding offers greater financial flexibility for Taqa in comparison to other available financing sources, allowing them to draw based on cash flow needs and investment schedules.
The two-year term of the loan aligns well with Taqa’s debt maturity schedule, as the group has no institutional debt maturities in 2027.
This financing integrates seamlessly with the corporate financing framework that the company currently implements, which includes a $20 billion medium-term global bond program and a $3.5 billion revolving credit facility.
Together, these financial instruments provide the group with a balanced and diversified capital structure that supports operational flexibility and future growth.
Moreover, this funding enhances the company’s financial readiness as it continues to execute its strategic investment program, which encompasses growth opportunities both domestically and internationally in the electricity, water, and low-carbon energy sectors.