Abu Dhabi (Etihad)
Abu Dhabi National Energy Company (TAQA) announced that Mirfa International Water and Electricity Company, the company that owns and operates the independent Mirfa water desalination and electricity generation plant, has completed a 4 billion dirhams refinancing. of the United Arab Emirates ($ 1.09 billion).
This long-term bank loan is denominated in US dollars and will expire on September 30, 2042, as nine international and regional banks participated in the refinancing process.
Banking entities include Abu Dhabi Commercial Bank, Bank of China (Dubai Branch), First Abu Dhabi Bank, KfW IPEX Bank, Norinchukin Bank, National Bank of Saudi Arabia, Shinsei Bank, Sumitomo Mitsui Banking Corporation, and Sumitomo Mitsui Trust Bank.
The proceeds of the new long-term loan were used to refinance the existing debts of the International Mirfa Water and Electricity Company, which were lent in 2014 under a long-term loan with a short-term refinancing option, a financing model recently popular in the region’s public service sector.
Farid Al-Awlaki, Executive Director of the Power Generation and Water Desalination Business Unit at TAQA, said: “The TAQA Group is committed to ensuring competitive funding for our resources to maximize returns for our shareholders and strategic partners. The approval of the refinancing of over one billion dollars of the loan from the International Mirfa Water and Electricity Company demonstrates the hard work carried out by many stakeholders and confirms the willingness to finance large utility projects in Abu Dhabi, managed by the TAQA Group ”.
For his part, Frederic Clough, Managing Director of Thermal Power Solutions and Supply at ENGIE in Asia, the Middle East and Africa, said: “As a leader in independent electricity generation and water desalination in the Gulf region, ENGIE is pleased to announce a Refinancing deal for the independent Mirfa water and electricity plant in Abu Dhabi. This demonstrates our long experience and continued success in restructuring large and complex financing operations to improve the financial security of our shareholders, as well as our commitment to meet the growing demand for electricity and water in the region, in light of achieving a economic growth with positive effects on individuals and the environment “.
Growing demand for water and electricity
Frederic Halkin, CEO of Mirfa International Water and Electricity Company, said: “The Mirfa water and power plant is an essential part of the public utility infrastructure in the UAE, providing electricity and water to thousands of homes every day. This achievement financial demonstrates the significant role these activities play in meeting the growing demand for electricity and water and demonstrates the ability of these best-in-class projects to attract commercially competitive finance. “
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