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TAQA secures AED 4bn refinancing for Mirfa IWPP project; Co-led by Saudi SNB

TAQA secures AED 4bn refinancing for Mirfa IWPP project; Co-led by Saudi SNB
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Abu Dhabi – Mubasher: Abu Dhabi National Energy Company (TAQA) obtained AED 4 billion, equivalent to $1.09 billion, as refinancing from Mirfa International Power and Water Company (MIPCO), the owner and operator of the Mirfa Power and Water Plant (Mirfa IWPP).

This long-term financing is USD-denominated and will mature on 30 September 2042, according to a recent press release.

Nine international and regional banks led the transaction, including Abu Dhabi Commercial Bank (ADCB), Bank of China - Dubai branch, First Abu Dhabi Bank (FAB), KfW IPEX-Bank, the Norinchukin Bank, and Saudi National Bank (SNB). Shinsei Bank, Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank also participated in the refinancing process.

The Abu Dhabi-based power and water firm used the secured loan’s proceeds to refinance its existing debt facilities, which were registered in 2014 as part of a soft mini-perm structure.

Farid Al Awlaqi, Executive Director of Generation at TAQA Group, noted: “The refinancing of more than $1 billion of MIPCO’s debt facilities showcases the hard work of many of our stakeholders and the appetite for funding major utility projects in Abu Dhabi, at which TAQA is at the helm.”

Mirfa IWPP is a combined-cycle gas turbine power plant attached to a modular reverse osmosis plant and three multi-stage flash desalination units. It can generate total gross water desalination of 1.7 gigawatts (GW) and 53 million imperial gallons per day (MIGD).

TAQA holds a 60% stake in the power plant, while France-based ENGIE and Japanese Sojitz Corporation (Sojitz) own a 20% equity each.

During the first half (H1) of 2022, the net profits attributable to the equityholders of TAQA widened to AED 4.28 billion from AED 2.85 billion in H1-21.