TAQA Group Announces One of Morocco’s Largest Private Bond Placements in 2020

AED 1.08 billion bond placement follows 17-year Power Purchase Agreement extension option for TAQA Morocco’s Jorf Lasfar Power Plant. Company reinforces its position in the Moroccan energy market, where it generates electricityto meetmore than 40% of the country’s electricity demand.

TAQA Group Announces One of Morocco’s Largest Private Bond Placements in 2020

Abu Dhabi, UAE: Abu Dhabi National Energy Company PJSC (“TAQA”, the “Company” or the “Group”) announce done of Morocco’s largest private bond placements in 2020, reinforcingthe Company’s position in the Moroccan energy market, where its subsidiary, TAQA Morocco, generates electricity to meet more than 40% of the country’s electricity demand. The landmark transaction was deliveredthrough TAQA Morocco’s finalizationof a bond issuance by a private placement for AED 1.08 billion(USD 293.8million), which diversifies TAQA Morocco’s funding base.

The bond placement was substantially oversubscribed for by qualified investors, providing the company an opportunity to further optimize its capital structure and create value for its shareholders. The transaction resulted in a reduction in debt cost of over 20% and an extension to its debt maturity date by 11 years, to March 2038.

Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA Group, said: “Our bond placement in Moroccounderscoresthe critical role that our Generation business plays in our internationalgrowth strategy. As a regionally leading, fully integrated utilities champion, TAQA remains a trusted utility partnerin Moroccothrough a proven track record of meeting a significant portion of the country’s electricity demand.Through our scale, agility and financial strength, TAQAwill continue to drive smart, selective growth, building on our existing global portfolio and steering the Group towards opportunities thatwill drive value-creation for our shareholders, business partners, customers and the communities we serve.”

The bond issuance follows the option to extend the Power Purchase Agreement (PPA) between TAQA Morocco and the electricity off-taker,Office National de l'Electricité et de l'Eau Potable (ONEE),for an additional 17 years in respect to Units 1-4 of its Jorf Lasfar Power Plant, thereby enhancing value by extending the company’s debt repayment profile. TAQA Morocco’s 2,056 MW Jorf Lasfar Power Plant generates electricity to meetmore than 40% of Morocco’s demand, serving approximately 18 million people annually. It is one of the largest power plantsof its kind in theMENA region.

TAQA Group’s bond placement in Morocco follows the conclusion of TAQA’s successful transaction with Abu Dhabi Power Corporation (ADPower) on July 1, 2020, which created one of the largest publicly listed companies in the UAE by market capitalization and a top-10 utility player in the EMEA region by regulated assets. As part of the transaction, the majority of ADPower’s power and water generation, transmission and distribution assets – including Al Ain Distribution Company, Abu Dhabi Distribution Company and Abu Dhabi Transmission and Despatch Company – were transferred to TAQA in exchange for 106,367,950,000 new shares.