UAE’s MIPCO to issue over $1 billion bonds for refinancing, desalination project

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Mirfa International Power and Water Company (MIPCO), majority owned by Abu Dhabi’s TAQA, is planning a bond sale of more than $1 billion to refinance debt and begin a new phase of a desalination project, Al Arabiya reported on Tuesday citing sources.

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MIPCO may use a financing framework similar to that adopted by Abu Dhabi solar energy firm Sweihan PV Power Company, which raised $700.8 million through a sale of amortizing green bonds last month, Al Arabiya said.

The bonds will refinance a $1.2 billion seven-year loan taken in 2014 to fund the MIPCO project, with the proceeds also financing the second phase of the project.

MIPCO did not immediately respond to an emailed request for comment.

The Gulf has seen a surge of green, or sustainable, debt sales as investor demand for eco-friendly deals balloons.

Several large issuers are expected to issue green bonds this year, including Saudi Arabia and its sovereign wealth fund.

MIPCO, set up in 2014, is an independent water and power project launched under a government-led privatisation programme. It produces 1.6 gigawatts of contracted power capacity, according to its website.

It is 60 percent owned by the Abu Dhabi National Energy Company (TAQA) and the remaining 40 percent is evenly split between Engie and Sojitz. TAQA is 98.6 percent owned by the Abu Dhabi government.

MUFG and Alderbrook are financial advisers for Sojitz and Engie, Al Arabiya said.

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