Taqa to refinance Mirfa Power and Water Plant with Dhs4b funding

Abu Dhabi National Energy Company (Taqa), one of the largest listed integrated utility companies in the Europe, Middle East and Africa region, has announced that the Mirfa International Power & Water Company (MIPCO), the project company that owns and operates the Mirfa Power & Water Plant (Mirfa IWPP), successfully completed refinancing of Dhs4 billion ($1.09 billion).

This long-term financing is denominated in USD and is slated to mature on September 30, 2042. Nine international and regional lenders participated in this refinancing.

The syndicate of mandated lead arrangers comprised Abu Dhabi Commercial Bank, Bank of China (Dubai) Branch, First Abu Dhabi Bank, KfW IPEX-Bank GMBH, The Norinchukin Bank, Saudi National Bank, Shinsei Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank.

The proceeds from the new long-term senior secured loan were utilised to refinance the Abu Dhabi-based power and water company’s existing debt facilities, which were established in 2014 as part of a soft-mini perm structure, an increasingly popular financing model within the region’s utility sector.

Farid Al Awlaqi, Executive Director of Generation at Taqa Group, commented: “Taqa Group is committed to securing competitive finance for our assets to maximise returns for our shareholders and business partners. The refinancing of more than $1 billion of MIPCO’s debt facilities showcases the hard work of many of our stakeholders and the appetite for funding major utility projects in Abu Dhabi, at which Taqa is at the helm.”

Frederic Claux, Managing Director, Thermal and Supply AMEA, ENGIE, said: “As a leading independent power and desalination water developer and producer in the GCC, at ENGIE, we are delighted to announce this refinancing deal for our Mirfa independent water and power plant in Abu Dhabi. Not only does this demonstrate our track record in structuring large and complex financing transactions to provide greater security for our shareholders, but also our commitment to meeting the growing demand for electricity and water in the region and reconciling economic performance with a positive impact on people and the planet.”

Frédéric Halkin, Executive Managing Director, MIPCO, said: “The MIPCO Power and Water Plant in Mirfa is a key part of the UAE’s utilities infrastructure, supplying thousands of households with power and water every day. This financial milestone showcases not only the critical role of these assets in meeting the growing demand for power and water, but also how these best-in-class projects continue to attract commercially competitive financing.”

Mirfa International Power and Water plant is a combined-cycle gas turbine power plant along with a modular reverse osmosis plant and three multi-stage flash desalination units. It has a gross installed power capacity of 1.7 gigawatts (GW) and 53 million imperial gallons per day (MIGD) gross water desalination capacity. It is 60 per cent owned by Taqa, with ENGIE and Sojitz owning a 20 per cent stake each.

MIPCO was advised on its refinancing by Allen & Overy, a renowned international law firm, while the group of lead arrangers was supported by Linklaters, a global law firm, and WSP, one of the world’s leading engineering consulting firms.

Established in 2005, Taqa is a diversified utilities and energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange.

Taqa has significant investments in power and water generation, transmission, and distribution assets, as well as upstream and midstream oil and gas operations. The company’s assets are in the United Arab Emirates as well as Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, Saudi Arabia, the United Kingdom, and the United States.

We are a global reference group in low-carbon energy and services. With our 170,000 employees, customers, partners, and stakeholders, we are committed every day to accelerating the transition to a carbon-neutral world, through more energy-efficient and environmentally friendly solutions. Guided by our raison d’être, we reconcile economic performance and positive impact on people and the planet by relying on our key businesses (gas, renewable energies, services) to offer competitive solutions to our customers.

Revenue in 2021 is €57.9 billion and the company is listed in Paris and Brussels (ENGI), the Group is represented in the main financial indices (CAC 40, Euronext 100, FTSE Eurotop 100, MSCI Europe) and extra-financial indices (DJSI World, DJSI Europe, Euronext Vigeo Eiris - Eurozone 120/ Europe 120/ France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG, and Stoxx Global 1800 ESG).

Sojitz Corporation is listed on the Tokyo Stock Exchange and was formed in 2003 out of the union of Nichimen Corporation and Nissho Iwai Corporation, and boasts of more than 160 years of business history. Today, the Sojitz Group consists of approximately 400 subsidiaries and over 20,000 employees engaged in a wide range of businesses globally.