Abu Dhabi, UAE – September 21, 2022: Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utility companies in the Europe, Middle East and Africa region, has announced that the Mirfa International Power & Water Company (MIPCO), the project company that owns and operates the Mirfa Power & Water Power Plant (Mirfa IWPP), successfully completed refinancing of AED 4 billion (USD 1.09 billion).
This senior-secured long-term financing is denominated in USD and is slated to mature on September 30, 2042. Nine international and regional lenders participated in this refinancing.
The syndicate of mandated lead arrangers comprised Abu Dhabi Commercial Bank PJSC, Bank of China (Dubai) Branch, First Abu Dhabi Bank PJSC, KfW IPEX-Bank GMBH, The Norinchukin Bank, Saudi National Bank, Shinsei Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank.
The proceeds from the new long-term senior secured loan were utilized to refinance the Abu Dhabi-based power and water company’s existing debt facilities, which were originally formed in 2014 as part of a soft-mini perm structure, an increasingly popular financing model within the region’s utility sector.
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “TAQA Group is committed to securing competitive finance for our assets to maximize returns for our shareholders and business partners. The refinancing of more than US$ 1 billion of MIPCO’s debt facilities showcases the hard work of many of our stakeholders and the appetite for funding major utility projects in Abu Dhabi, at which TAQA is at the helm.”
Frederic Claux, Managing Director, Thermal and Supply AMEA, ENGIE, said: “As a leading independent power and desalination water developer and producer in the GCC, at ENGIE, we are delighted to announce this refinancing deal for our Mirfa independent water and power plant in Abu Dhabi. Not only does this demonstrate our track record in structuring large and complex financing transactions to provide greater security for our shareholders, but also our commitment to meeting the growing demand for electricity and water in the region and reconciling economic performance with a positive impact on people and the planet.”
Frédéric Halkin, Executive Managing Director, MIPCO, said: “The MIPCO Power and Water Plant in Mirfa is a key part of the UAE’s utilities infrastructure, supplying thousands of households with power and water every day. This financial milestone showcases not only the critical role of these assets in meeting the growing demand for power and water, but also how these best-in-class projects continue to attract commercially competitive financing.”
Mirfa International Power and Water plant is a combined-cycle gas turbine power plant along with a modular reverse osmosis plant and three multi-stage flash desalination units. It has a gross installed power capacity of 1.7 gigawatts (GW) and 53 million imperial gallons per day (MIGD) gross water desalination capacity. It is 60% owned by TAQA, with ENGIE and Sojitz owning a 20% stake each.
In addition, MIPCO was advised on its refinancing by Allen & Overy LLP, a renowned international law firm, while the group of lead arrangers was supported by Linklaters, a global law firm, and WSP, one of the world’s leading engineering consulting firms.