Abu Dhabi National Energy Company (TAQA) announced the successful closure of an AED 8.5 billion corporate term loan facility, reinforcing the company’s commitment to maintaining a strong and flexible balance sheet in support of its long-term growth strategy and capital planning.
The facility, structured as a two-year AED-denominated floating-rate loan with a one-year extension option, is part of TAQA’s broader capital management strategy.
The company plans to utilize the funds in a phased manner over time, allowing it to align capital deployment with cash flow and investment timelines.
Strengthening financial flexibility and capital structure
The transaction was led by Emirates NBD Bank and First Abu Dhabi Bank (FAB), which acted jointly as bookrunners, mandated lead arrangers, and coordinators. Mashreq Bank joined as a mandated lead arranger.
Local currency loan offers strategic advantage
By opting for funding in UAE dirhams, TAQA has aligned the facility with its dirham-based income profile, benefiting from the strong domestic liquidity environment.
The use of EIBOR as a benchmark rate offers a cost-effective alternative to international benchmarks, further enhancing the efficiency of the loan.
No corporate debt maturity in 2027
The two-year loan tenor, with the option to extend by another year, aligns with TAQA’s existing maturity profile.
The group has no corporate debt maturing in 2027, providing ample room for balance sheet planning and long-term financial agility.
Enhancing funding options and resilience
The new facility adds to TAQA’s diversified financing tools, complementing its existing $20 billion Global Medium Term Note (GMTN) program, and its $3.5 billion revolving credit facility.
These instruments form a robust corporate funding framework that ensures operational resilience, liquidity access, and the financial readiness required for future expansion.
Jasim Husain Thabet, TAQA group CEO and managing director, said: “Securing 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.
“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.”
Supporting growth in power, water, and low-carbon energy
TAQA’s strategic investment program spans both domestic and international markets, with a focus on power, water, and low-carbon energy sectors.
The new corporate loan enhances the group’s ability to seize opportunities across these areas while maintaining a disciplined capital structure.
