Abu Dhabi National Energy Company (Taqa) lined up an AED 8.5 bn corporate term loan, giving it more firepower to fund growth and keep its balance sheet liquid, according to a press release (pdf). The two-year facility will be drawn down in phases, letting the utility company time its borrowings with its investment schedule, and has a one-year extension option.

Why it matters: The new loan adds another layer to Taqa's funding, which already includes a USD 20 bn global bond program and a USD 3.5 bn revolving credit facility. The ADX-listed company has no big maturities due in 2027, giving it breathing room as it presses ahead with investments in power, water, and low-carbon projects at home and abroad. The transaction also underlines market confidence in Taqa’s AA credit profile, which helps it secure funding on competitive terms.

REMEMBER- Taqa is pressing ahead with international expansion, with projects including a AED 52 bn integrated power and water infrastructure program in Morocco, its takeover of the Talimarjan power complex in Uzbekistan, and the acquisition of UK-based Transmission investment.

This facility is pegged to EIBOR, the local interbank lending rate that sets the cost of borrowing AED, which Taqa says is currently cheaper than raising debt against global benchmarks.

The utilities firm has a healthy capital structure: The state-owned company boasts a 34% debt-to-capital ratio with AED 61.7 bn in gross debt at the end of June 2025, down from AED 64.1 bn at the end of 2024, according to its financials (pdf). Its freecash flow was at AED 7.0 bn at the end of June, up from AED 4.3 bn during the same period last year, giving the utility giant room to pay dividends and increase capex by 28.6% to AED 5.2 bn. Taqa plans to deploy AED 75 bn in capex by 2030, AED 27 bn of which has been deployed by the end of 2024.

ADVISORS- Our friends at Mashreq are lead arranger, along with Emirates NBD and First Abu Dhabi Bank. ENBD and FAB are also joint bookrunner and coordinator.

Tags: