TAQA plans US$800 million bond sale to refinance Shuweihat plant
Monday, 03 September 2012 06:16
Abu Dhabi National Energy Company (TAQA) is reportedly considering a US$800mn bond sale next quarter to refinance the Shuweihat S2 power and water plant, according to Bloomberg
Undisclosed sources close to the potential deal have stated that funds raised by the project bond would be used to refinance existing bank loans. Revenue from the plant was suggested as a means to repay the bond.
Reports have suggested that talks are ongoing with lenders concerning refinancing terms and the size of the bond.
TAQA and its partners will refinance construction loans that were arranged in 2009 during the global financial crisis when borrowing rates were higher, the source said.
Shuweihat S2, a gas-fired facility capable of generating 1,510MW of power and desalinating water, began operating in the Q2 2011.
Abu Dhabi is expanding its power-generation network to meet demand from a growing population and energy-intensive industries such as production of metals and petrochemicals.