Abu Dhabi National Energy Company (TAQA) has secured an 8.5 billion UAE dirhams ($2.3 billion) term loan to boost liquidity and advance its growth.  

The facility is a two-year AED-denominated floating-rate loan, with a one-year extension option, with the company intended to use the facility over time in a phased manner.

Emirates NBD Bank and First Abu Dhabi Bank have been mandated to act jointly as Bookrunners, Leader Arrangers and Coordinators, while Mashreq Bank acted as Lead Arranger for the term loan facility.

The ADX-listed integrated utilities company said the use of AED funding offers them a cost advantage over international benchmarks with the Emirates Interbank Offered Rate (EIBOR).

TAQA said the two-year tenor aligns well with its maturity profile, as the Group has no corporate debt maturities scheduled in 2027.

This facility comes under TAQA’s corporate funding framework, which includes a $20 billion Global Medium Term Note (GMTN) programme and a $3.5 billion revolving credit facility.

In a note, EFG Hermes analysts said the transaction enhances TAQA’s capital structure flexibility “and would allow the company the funding room to tackle growth projects that include T&D projects in Abu Dhabi and/or capital commitments to fund its equity stake in Masdar.” 

Last week, TAQA reported a Q2 net profit attributable of AED 1.63 billion, with revenue for the quarter at AED 14.23 billion. The company’s H1 CAPEX stood at AED 5.2 billion.