Bloomberg News

Abu Dhabi’s Taqa Sets Up 3.5 Billion Ringgit Sukuk Program

October 02, 2011

(Updates with sukuk sales in fourth paragraph.)

Oct. 2 (Bloomberg) -- Abu Dhabi National Energy Co. set up a 3.5 billion Malaysian ringgit ($1.1 billion) sukuk program as the state-controlled utility known as Taqa diversifies its financing options.

“The program will allow Taqa to issue quickly if and when the market conditions are optimal,” the company said in a statement to the Abu Dhabi bourse today. The sale will be Taqa’s first ringgit sale, according to Bloomberg data.

Malaysia, the world’s largest market for Islamic bonds, has eased foreign ownership rules and encouraged new Shariah- compliant products to attract investors. Tamweel PJSC, the Dubai-based mortgage lender, plans to raise at least $300 million to $500 million from sukuk sale this quarter denominated either in Malaysian ringgit or dollars, acting Chief Executive Officer Varun Sood said last week.

Global sales of sukuk, which pay asset returns to comply with Islam’s ban on interest, climbed to $17.6 billion in 2011, compared with $11.8 billion in the same period last year, data compiled by Bloomberg show. Kuwait-based Gulf Investment Corp. sold 1.35 billion ringgit of Islamic bonds in two issues this year, while National Bank of Abu Dhabi PJSC sold two bonds totaling 1 billion ringgit last year.

Taqa, which owns stakes in oil, gas and power assets in the Middle East, North America, the North Sea and India, plans to invest $2 billion every year through 2013 and has no need to refinance until October 2012, Chief Financial Officer Stephen Kersley said in August. The company’s second-quarter profit climbed to 435 million dirhams ($118 million) from 171 million dirhams a year earlier as sales increased 38 percent.

Taqa has 72.3 billion dirhams in outstanding debt, including a 5.51 billion-dirham facility maturing next year, according to Bloomberg data.

--Editors: Shaji Mathew, Claudia Maedler

To contact the reporters on this story: Shaji Mathew in Dubai at shajimathew@bloomberg.net; Dana El Baltaji in Dubai at delbaltaji@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net


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