Taqa unit secures $1.4 billiion financing

Abu Dhabi National Energy Co, better known as Taqa, said its wholly-owned subsidiary Jorf Lasfar Energy Co has signed financing arrangements worth $1.4 billion (Dh5.1 billion) for a 700-mega watt expansion of its coal-fired power complex in Morocco, as the energy firm continues to grow its power business throughout the Middle East and North Africa region. BNP Paribas, Societe Generale and Standard Chartered Bank were the mandated lead arrangers for the international debt facilities, while Morocco’s Banque Centrale Populaire was the mandated lead arranger for the Moroccan dirham credit facilities, Taqa said in a statement on the Abu Dhabi stock exchange website Thursday. Japan Bank for International Co-operation, Nippon Export and Investment Insurance and the Export Import Bank of Korea will provide direct loans and loan guarantees for more than 50 per cent of the total project debt, marking the first time that Japanese and Korean export credit agencies have participated in project financing in Morocco, the statement said. Infrastructure project Jorf Lasfar is the largest power complex in the Mena region and Morocco’s first independent power producer, or IPP, which after the expansion will have a gross capacity of 2056 MW of electricity, Taqa said, adding it will be a key infrastructure project in the North African country’s energy strategy. The expansion project consists of unit 5 and unit 6, with a capacity of 350 MW each and is expected to be completed by 2014, according to Zawya.com data. Taqa, which is majority owned by the state-owned Abu Dhabi Water and Electricity Authority, said in May that is planning $2.25 billion of capital expenditures this year. The energy producer has said developing its international power business in the Mena region is core to its growth strategy.from gulfnews.com