Abu Dhabi National Energy Co. (Taqa) and its partners in the Shuweihat S2 plant are planning to raise cash through a project bond in October, the bankers said, asking not to be identified because the information is confidential. The cash will be used to refinance existing bank loans, and revenue from the plant will provide money to repay the bond, the bankers said. Taqa declined to comment.
Taqa and partners including GDF Suez SA and Marubeni Corp will refinance construction loans that were arranged in 2009 during the global financial crisis when borrowing rates were higher than today, the bankers said. Shuweihat S2, a natural-gas-fired facility capable of generating 1,510 megawatts of power and desalinating water, began operating in the second quarter of 2011.