Abu Dhabi – Mubasher: TAQA Morocco, an 85.79% subsidiary of Abu Dhabi National Energy Company (TAQA), has finalised a bond issuance by a private placement for AED 1.08 billion ($293.8 million).
The placement is one of Morocco’s largest private bond placements in 2020, which strengthens TAQA's position in the Moroccan energy market, according to the company's disclosure to the Abu Dhabi Securities Exchange (ADX) on Thursday.
TAQA Morocco meets over 40% of Morocco’s electricity demand.
Oversubscribed by qualified investors, the bond placement enables the company to further optimise its capital structure by resulting in cutting debt cost of more than 20% and extending its debt maturity date by 11 years to March 2038.
This issuance came following the extension of the Power Purchase Agreement (PPA) between TAQA Morocco and the electricity off-taker, Office National de l'Electricité et de l'Eau Potable (ONEE), to an additional 17 years in respect to Units 1-4 of its Jorf Lasfar Power Plant.
The CEO and Managing Director of TAQA Group, Jasim Husain Thabet, commented: "Our bond placement in Morocco underscores the critical role that our Generation business plays in our international growth strategy."
It is noteworthy to mention that on 1 July 2020, TAQA has completed its merger deal with Abu Dhabi Power Corporation (ADPower) to establish one of the largest utility companies in the Europe, Middle East, and Africa (EMEA) region.
