TAQA Secures AED 8.5 Billion Term Loan To Enhance Financial Flexibility And Growth Strategy

Abu Dhabi National Energy Company (TAQA) has secured an AED8.5 billion corporate term loan facility. This move highlights TAQA's focus on maintaining a robust and adaptable financial structure while supporting its long-term growth plans. The loan is a two-year, AED-denominated floating-rate facility with an option to extend for one year. TAQA plans to use the funds gradually.

The loan facility enhances TAQA's financial flexibility, allowing it to align drawdowns with its cash flow and investment schedule. This aligns well with TAQA’s maturity profile, as the company has no corporate debt due in 2027. The use of AED funding matches the Group’s dirham-based income and benefits from strong local liquidity, offering cost advantages over international benchmarks.

Emirates NBD Bank and First Abu Dhabi Bank were appointed by TAQA as joint Bookrunner, Mandated Leader Arranger, and Coordinator for this transaction. Mashreq Bank also played a role as Mandated Lead Arranger for the term loan facility. This collaboration underscores the trust placed in TAQA by its banking partners.

Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, stated: "Securing this facility marks another step in delivering on TAQA’s long-term growth strategy, reinforcing our ability to maintain a strong and flexible balance sheet to support future investments." He emphasised that the terms reflect their credit strength and the trust from banking partners.

This new facility complements TAQA’s existing corporate funding framework, which includes a US$20 billion Global Medium Term Note (GMTN) programme and a US$3.5 billion revolving credit facility. Together, these instruments provide a balanced capital structure that supports operational resilience and future growth.

The transaction diversifies liquidity sources and supports ongoing efforts to optimise the Group’s capital structure. It ensures financial flexibility necessary for delivering reliable power and water services while pursuing strategic investments in domestic and international opportunities across power, water, and low-carbon energy sectors.

The facility demonstrates TAQA's capability to access competitive funding in its domestic currency while retaining flexibility to draw down funds according to capital needs. This approach supports their strategy of maintaining a strong balance sheet for future investments.

With inputs from WAM