Taqa, an Abu Dhabi-based energy company, said the Ruwais Power Company power and desalination plant (Shuweihat 2) has completed an issuance of $825 million in project bonds.

The plant, which is 54 per cent owned by Taqa, issued the bonds at a coupon of 6 per cent with a final maturity in August 2036 and an average life of 21.5 years.

Stephen Kersley, chief financial officer at Taqa, said: “We are pleased to have reached a successful execution of the Shuweihat 2 bond transaction in the face of a difficult market environment. Strong support from our key investors allowed us to build a substantial order book and achieve an attractive coupon of 6 per cent.”

“This transaction not only increases the returns to Taqa for this project, but is also the first step in building an active and liquid project bond market in the region,” said Kersley.

Shuweihat 2 is a combined cycle co-generation facility located on the coast at Jebel Dhana, 250 km southwest of Abu Dhabi City. It is capable of producing approximately 1,500 MW of electricity and 100 MIGD of desalinated water. The entire production of 1,500 MW of power and 100 MIGD of water is purchased by the Abu Dhabi Water and Electricity Company (ADWEC).

The power and desalination plant is owned by Ruwais Power Company, a joint venture between Taqa, Abu Dhabi Water and Electric Authority, International Power – GDF Suez, Marubeni and Osaka Gas. - TradeArabia News Service