UAE's Taqa to sell $1.13bn in bonds

State-controlled Abu Dhabi National Energy Co. (Taqa) said its board has approved a plan to sell 4.15 billion dirhams ($1.13 billion) worth of bonds convertible to shares.

The bonds would be offered "primarily to the shareholders of Taqa registered as on June 16", the company said in a statement posted on the bourse website on Tuesday.

The subscription period for the bonds will be 10 days starting July 1 and the conversion will take place on Sept. 1, it said.

The bonds will be issued in a denomination of 1,000 dirhams and will convert into 500 shares, it said.

Energy group Taqa announced the plan for the bond issue in April.

The government of Abu Dhabi owns 75 percent of Taqa. The rest is publicly traded. This would be the first time the state-controlled UAE firm sells convertible bonds.

The Abu Dhabi government uses Taqa as a vehicle to invest part of its record oil revenues to diversify assets.

Taqa tapped the debt market in October, selling $2 billion of bonds.

Taqa Chief Executive Peter Barker-Homek said in December the company might sell convertible bonds this year to finance buyouts.

The company plans to triple the value of its assets to $60 billion by the end of 2012, from about $21 billion at the end of last year.

Taqa in November won Canadian approval to buy PrimeWest Energy Trust for C$5 billion ($4.98 billion) and the Canadian unit of Pioneer Natural Resource Co. for $540 million. (Reuters)

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