Abu Dhabi (Etihad)
The Abu Dhabi National Energy Company (TAQA) announced that Mirfa International Water and Electricity Company, the company that owns and operates the Mirfa Independent Water Desalination and Electricity Production Plant, has completed a refinancing of 4 billion UAE dirhams ($1.09 billion).
This long-term bank financing is denominated in US dollars and is due to mature 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.
Proceeds from the new long-term loan were used to refinance existing debts of the International Mirfa Water and Electricity Company, which were lent in 2014 as part of long-term financing with a short-term refinancing option, a financing model recently popular in the utilities sector in the region.
Farid Al-Awlaki, Executive Director of the Power Generation and Water Desalination Business Unit at TAQA, said: “The TAQA Group is committed to securing competitive financing for our assets to maximize returns for our shareholders and strategic partners. The approval of the refinancing of more than one billion dollars from the loan of the International Mirfa Water and Electricity Company demonstrates the amount of hard work done by many stakeholders, and confirms the desire to finance major utility projects in Abu Dhabi, which are 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 leading independent production of electricity and water desalination in the Gulf region, ENGIE is pleased to announce a deal Refinancing of the Mirfa Independent Water and Electricity Plant in Abu Dhabi. This demonstrates our long experience and continued success in restructuring large and complex financing transactions to enhance the financial security of our shareholders, as well as our commitment to meeting the growing demand for electricity and water in the region, in light of achieving economic growth with positive effects on individuals and the environment.”
Increasing 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 utility infrastructure in the UAE, providing electricity and water to thousands of homes every day. This financial achievement demonstrates the significant role these assets play in meeting the growing demand for electricity and water and demonstrates the ability of these best-in-class projects to attract commercially competitive financing.”
