Dubai: Abu Dhabi National Energy Co’s (Taqa) move to buy back $1.5
billion (Dh5.5 billion) in bonds from investors — at a juicy premium —
will help the company manage its debt levels at a time of increasingly
expensive bank loans, but lower-rated Gulf corporates may struggle to
follow a similar strategy.
A-rated Taqa, 75 per cent owned by the government of Abu Dhabi,
launched a tender offer this week to buy back its bonds maturing in
2012, and enlisted banks to arrange a possible new bond issue under its
“Combining a tender offer for the 2012 bonds with a new bond issue
allows Taqa to refinance an upcoming liability, extend its debt maturity
profile, and take advantage of the low interest rate environment which
currently exists,” said Chavan Bhogaita, head of the markets strategy
unit at National Bank of Abu Dhabi.