Taqa approves $572mn capital boost

CAPITAL BOOST: Taqa's board has approved a $571.7 million capital increase that will allow it to convert a recent bond issue into shares. (Getty Images)

State-controlled Abu Dhabi National Energy (Taqa) said on Wednesday its board had approved a 2.1 billion-dirham ($571.7 million) capital increase that will allow it to convert a recent bond issue into shares.

Taqa issued convertible bonds worth 4.15 billion dirhams in July, mandatorily convertible into shares on Sept. 1 at a ratio of 2 to 1.

"The board resolved to proceed with the conversion of the convertible bonds into shares of the company in accordance with the terms... [and] approve the resulting increase in the company's share capital," Taqa said in a statement.

The government of Abu Dhabi owns 75 percent of Taqa. The rest is publicly traded.

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. 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. (Reuters)

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