Taqa bolsters position in Morocco energy market
Taqa Morocco, a subsidiary of Abu Dhabi National Energy Company (Taqa) has announced the finalization of bond issuance by a private placement for AED 1.08 billion ($293.8 million), which diversifies Taqa Morocco’s funding base.
Taqa Morocco generates electricity to meet more than 40% of the country’s electricity demand.
The bond placement was substantially oversubscribed for by qualified investors, providing the company an opportunity to further optimize its capital structure and create value for its shareholders. The transaction resulted in a reduction in debt cost of over 20% and an extension to its debt maturity date by 11 years, to March 2038.
Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of Taqa Group said: “Our bond placement in Morocco underscores the critical role that our Generation business plays in our international growth strategy. As a regionally leading, fully integrated utility champion, Taqa remains a trusted utility partner in Morocco through a proven track record of meeting a significant portion of the country’s electricity demand.
“Through our scale, agility and financial strength, Taqa will continue to drive smart, selective growth, building on our existing global portfolio and steering the Group towards opportunities that will drive value creation for our shareholders, business partners, customers and the communities we serve.”
The bond issuance follows the option to extend the Power Purchase Agreement (PPA) between Taqa Morocco and the electricity off-taker, Office National de l’Electricité et de l’Eau Potable (ONEE), for an additional 17 years in respect to Units 1-4 of its Jorf Lasfar Power Plant, thereby enhancing value by extending the company’s debt repayment profile.
Taqa Morocco’s 2,056 MW Jorf Lasfar Power Plant generates electricity to meet more than 40% of Morocco’s demand, serving approximately 18 million people annually. It is one of the largest power plants of its kind in the Mena region. – TradeArabia News Service