Taqa completes refinancing of $3.5b revolving credit facility

Abu Dhabi National Energy Company (Taqa) on Friday announced that it has secured refinancing its $3.5 billion revolving credit facility. Secured via a syndicate comprising 20 banks, the new 5-year USD SOFR-based facility, which will be utilised for general corporate purposes, is set to replace the organisation’s existing $3.5 billion revolving credit facility, signed in December 2019. The facility was 1.7 times oversubscribed. In addition to extending the final maturity from 2024 to 2027, the new facility also benefits from very competitive pricing.

Steve Ridlington, Taqa Group’s Chief Financial Officer, commented, “We are pleased to announce the successful refinancing of Taqa’s revolving credit facility, for which we received a very high level of interest, allowing Taqa to extend the term of the facility whilst reducing the cost. This excellent outcome showcases both the market’s confidence in Taqa’s continued strong performance and our capability to drive the future of the global utilities industry.”

The Bookrunners, Initial Mandated Lead Arrangers and Global Coordinators of the facility are First Abu Dhabi Bank (FAB), Mizuho Bank Ltd, MUFG Bank Ltd, and Sumitomo Mitsui Banking Corporation (SMBC).

The Bookrunners and Mandated Lead Arrangers are: Agricultural Bank of China (AgBank), Barclays, BNP Paribas, Citibank, Emirates NBD (ENBD), HSBC Holdings, Mashreq Bank PSC, Standard Chartered, Bank of China, Industrial and Commercial Bank of China.

The Mandated Lead Arrangers are China Construction Bank, NBK Group, Intesa Sanpaolo, JP Morgan Chase & Co, The Bank of Nova Scotia (Scotiabank), and Natixis. SMBC also acted as the Documentation Bank, while FAB is the Facility Agent.

Meanwhile 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 Sept.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.