Abu Dhabi National Energy Co. (TAQA) plans to sell bonds as the state-run power provider seeks to refinance $2 billion of debt with borrowing costs near record lows.
The yield on the company’s December 2021 bonds has slid 231 basis points, or 2.31 percentage points, since the utility known as Taqa sold the securities 11 months ago. That compares with a 185 basis-point decline in HSBC/Nasdaq Dubai’s Middle East Conventional Corporate U.S. Dollar Bond Index. Another Abu Dhabi-owned business, International Petroleum Investment Co., began meeting investors in Europe last week to sell debt.
Companies in Abu Dhabi, capital of the United Arab Emirates, are tapping bond markets to pay for expansion. Government-affiliated businesses in oil-rich states of the Persian Gulf are partnering with private ones to build refineries, chemical factories and plants to process natural gas. The U.A.E. holds 6 percent of the world’s proven crude reserves, most of them in Abu Dhabi.
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