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TAQA Group Announces One of Morocco’s Largest Private Bond Placements in 2020.

TAQA Group Announces One of Morocco’s Largest Private Bond Placements in 2020.

Abu Dhabi National Energy Company PJSC (“TAQA”, the “Company” or the “Group”) stated one of Morocco’s biggest private bond positions in 2020, reinforcing the Company’s position in the Moroccan energy market, where its subsidiary, TAQA Morocco, generates power to meet more than 40% of the country’s power demand. The milestone transaction was carried through TAQA Morocco’s finalization of bond issuance by a private placement for AED 1.08 billion (USD 293.8 million), which diversifies TAQA Morocco’s funding base.

The bond position was heavily oversubscribed for by investors, providing the business with a chance to additionally optimize its initial structure and create value for its shareholders. The event resulted in a reduction in debt cost of over 20% and an increase in its debt culture date by 11 years, to March 2038. Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA Group said: “Our bond situation in Morocco underscores the important role that our Production business plays in our global growth strategy. As a regionally leading, fully integrated utility champion, TAQA remains a committed utility partner in Morocco through a proven track record of meeting an important portion of the country’s power demand. Through our scale, agility and economic strength, TAQA will continue to drive smart, careful growth, growing on our being 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 ensures the option to extend the Power Purchase Agreement (PPA) between TAQA Morocco and the electricity off-taker, Office National de Electricité et de l' Eau Potable (ONEE), for an additional 17 years in respect to Units 1-4 of its Jorf Lasfar Power Plant, whereby improving value by increasing 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, working about 18 million people yearly. It is one of the greatest power plants of its kind in the MENA region.

TAQA Group’s bond position in Morocco follows the completion of TAQA’s successful business with Abu Dhabi Power Corporation (ADPower) on July 1, 2020, which produced one of the largest openly listed companies in the UAE by market capitalization and a top-10 utility member in the EMEA region by fixed assets. As part of the business, the major.