TAQA Secures AED 8.5 Billion Loan to Boost Growth Strategy

Abu Dhabi National Energy Company, commonly known as TAQA, has taken a significant step to strengthen its financial position and support its long-term growth plans. The company recently announced that it has secured a corporate term loan facility worth AED 8.5 billion. This strategic financial move highlights TAQA’s commitment to maintaining a strong and flexible balance sheet while ensuring it has the resources needed for future investments and growth in power, water, and low-carbon energy sectors.

Details of the Loan Facility

The newly secured facility is a two-year loan denominated in UAE Dirhams (AED), which aligns well with TAQA’s income profile that is mostly based in the local currency. The loan carries a floating interest rate and includes an option to extend the facility for an additional year if needed. TAQA plans to use this facility gradually, drawing on it over time to match its investment and capital needs.

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The banks that helped arrange this deal include Emirates NBD Bank and First Abu Dhabi Bank, which acted jointly as Bookrunner, Mandated Leader Arranger, and Coordinator. Mashreq Bank also played a key role as a Mandated Lead Arranger. This collaboration reflects the confidence of the banking sector in TAQA’s creditworthiness and long-term strategy.

Benefits of AED-Based Funding

By securing funding in AED, TAQA benefits from the local currency’s strong liquidity and the favorable cost of borrowing through the Emirates Interbank Offered Rate (EIBOR), which is lower than some international benchmarks. Using dirham-based funding also helps the company better manage its cash flow since most of its income and revenues are earned in AED.

This approach adds flexibility to TAQA’s funding options and allows it to diversify its sources of liquidity. It strengthens the company’s ability to manage its capital structure effectively while keeping its finances stable and ready for growth opportunities.

TAQA’s Growth Strategy and Financial Flexibility

Jasim Husain Thabet, the Group Chief Executive Officer and Managing Director of TAQA, emphasized that securing this facility is another important step in the company’s long-term growth strategy. He stated that this financial move reinforces TAQA’s ability to maintain a strong balance sheet and remain flexible in its financial planning.

Thabet explained that the facility allows TAQA to access competitive funding in its domestic currency, with the ability to draw down funds as required for ongoing and future projects. The loan terms also reflect the strength of TAQA’s credit profile and the trust that its banking partners have in the company.

According to Thabet, this financial strength ensures that TAQA can continue to provide reliable and sustainable power and water to the communities it serves. The company aims to meet the growing energy and water demands both in the UAE and internationally, while also focusing on low-carbon and renewable energy projects.

Loan Tenure and Alignment with Debt Profile

The two-year duration of the loan aligns with TAQA’s existing debt maturity schedule, as the company does not have any corporate debt due in 2027. This means that the new facility fits well into the company’s overall financial planning and allows for smooth management of its debt obligations without creating pressure on cash flows.

Complementing Existing Funding Framework

This AED 8.5 billion facility complements TAQA’s already strong and diversified funding structure. Currently, the company has a US$20 billion Global Medium Term Note (GMTN) programme and a US$3.5 billion revolving credit facility. Together, these instruments provide TAQA with a well-balanced capital structure that supports both operational stability and future growth initiatives.

By combining these funding sources, TAQA ensures that it has access to the right financial resources at the right time, giving the company flexibility to invest strategically in both domestic and international projects. This approach also helps TAQA manage risks effectively and remain financially resilient, even in changing market conditions.

Strategic Investments and Future Plans

The funds from this facility will support TAQA’s strategic investment programme, which includes expanding power and water infrastructure and pursuing low-carbon energy projects. TAQA is committed to delivering reliable energy and water services while also focusing on sustainability and environmental responsibility.

The flexibility of the facility allows TAQA to plan its investments carefully, drawing on the loan in phases to align with its cash flow and project schedules. This ensures that the company can fund its growth without unnecessary pressure on its balance sheet or liquidity.

Confidence from Banking Partners

The successful completion of this facility highlights the confidence of TAQA’s banking partners in the company’s financial health and growth strategy. The participation of major banks such as Emirates NBD, First Abu Dhabi Bank, and Mashreq Bank demonstrates that TAQA’s financial profile is strong and trustworthy.

The facility’s structure also allows the company to maintain control over its financial resources while accessing funds in a way that best supports its ongoing and future projects. This is especially important as TAQA continues to pursue ambitious projects in power, water, and renewable energy.

TAQA’s AED 8.5 billion corporate term loan facility marks a significant milestone in the company’s growth journey. It strengthens the company’s balance sheet, provides financial flexibility, and ensures that TAQA can continue investing in key strategic areas.

By aligning the loan with its local currency income, diversifying funding sources, and complementing its existing financing structure, TAQA positions itself to meet future energy and water needs reliably. This strategic financial move underscores the company’s commitment to sustainable growth, operational resilience, and delivering value to the communities it serves.

TAQA’s strong financial foundation, supported by the trust of its banking partners, ensures that it is well-prepared to execute its growth strategy and continue its role as a reliable provider of energy and water solutions both in the UAE and globally.

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