Taqa: up to $9 billion in bonds, assets to reach $60 billion, foreigners to own shares
Posted: 02 July 2007
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 The Abu Dhabi National Energy Company (Taqa) is planning to issue anything between $3 billion and $9 billion in bonds to finance major expansion as it pushes ahead with plans to admit foreign shareholders.
CEO Peter Barker-Homek says expansion will push up the company’s assets from around $15 billion to nearly $60 billion while employees could more than triple to 7,000.
In an interview with Pipeline Magazine, Barker-Homek said Taqa had made $4.7 billion “wellhead to wall socket” investments in the past eight months and is planning to expand in the LNG and upstream sectors. Taqa is now active in 10 countries – which could double within five years.
You are planning to issue bonds to finance expansion? What is the value of the planned issue?
In the next five years we are putting two programmes for bonds, which we will issue to finance our expansion plans, including acquisitions. The value of the bonds will depend on how the acquisitions go forward but it might be around $3 billion on the lower side and $9 billion on the higher side.
As to where we plan to issue such bonds, we are targeting the global community. So we will be looking for investors around the world, including Europe, North America, the Middle East, Africa and other areas. The targeted investors are banks, companies and other institutions rather than individuals.
The purpose of such an issue is, of course, to finance our acquisition programmes. This year alone, we are discussing nearly $10 billion worth of deals and we will continue such discussions before we close in on the right deal. Such deals are in different areas but we are also studying investment opportunities in the Middle East, including Saudi Arabia .
You mentioned before that Taqa is considering investing in more LNG projects? Can you comment?
We already have LNG investment in the Netherlands and we are also looking for an opportunity in upstream production. We may also invest in companies that are involved in upstream and LNG production.
As for the GCC, we certainly welcome investment in LNG in this region. If we find an opportunity to invest in LNG in the Middle East , we will invest.
You have recently talked about the possibility of inviting foreign partners into Taqa. When do you plans to do so and what is the size of the proposed foreign share?
Yes there is a plan by the Abu Dhabi government to open up share ownership to foreign nationals. As you know, Taqa stocks are currently restricted for foreign ownership. So we may open up ownership to foreigners in the future, perhaps in 2008 or 2009. Shares will be offered on the Abu Dhabi Securities Market.
The aim of this move is to diversify the stakeholding base and deepen the market. It also aims to build our company as a global energy company.
As for how foreigners will be allowed to own, it is up to the Abu Dhabi government. Once we liberalise the shares, there will be a decision as to how much foreigners will be allowed to own in Taqa.
Can you give an idea about Taqa’s investments?
Over the last eight months, we have invested nearly $4.7 billion in various sectors, including the acquisition of Northrock. This year we hope to grow from a company of $15 billion in assets to $20 billion by the end of the year, an increase of around $5 billion.
How do you see Taqa in the near future?
In the next five years, I see Taqa growing to a company of $40-60 billion in assets and will probably have in excess of 7,000 employees compared with around 2,200 currently.
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