We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Fri 19 Oct 2007 01:59 PM

Font Size

- Aa +

Taqa aims to raise $2bn for acquisitions

Abu Dhabi National Energy Company looks to extend its multi-billion dollar acquisition spree.

Abu Dhabi National Energy Co. (TAQA), which is on a roadshow for a U.S. private placement this week, is planning to sell bonds worth as much as $2 billion to pay for acquisitions, bankers familiar with deal said.

The state-controlled firm has announced almost $8 billion of acquisitions in the last six months, including a proposed $5.12 billion takeover of Canadian oil and gas producer PrimeWest Energy Trust.

On Wednesday ratings agency Moody's Investors Service assigned a provisional rating of Aa2 to Canadian dollar denominated bonds to be sold by TAQA North Limited, a Canadian unit.

Bankers told Reuters on Tuesday that Citigroup was managing the sale, which will include tranches of 5-year and 10-year bonds. The transaction would comply with the U.S. Securities and Exchange Commission's 144a rule that governs private placements, they said.

Four other bankers who declined to be named said on Thursday TAQA would raise the equivalent of between $1.5 billion and $2 billion.

The firm also bought Pogo Producing Co's Northrock Resources unit for $2 billion in May, and in August said it would buy Canadian oil and gas firm Pioneer Canada.

Taqa is 75 percent owned by the government of Abu Dhabi, the world's sixth largest oil exporter.

In June the company said it would sell $9 billion of bonds over five years to finance expansion through a medium term note programme.

Ratings agencies have cited strong state support in justifying the firm's relatively high ratings.Taqa has declined to comment on the bond sale.

Arabian Business: why we're going behind a paywall

For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.