Reuters reported that Abu Dhabi National Energy Company has secured regulatory approval for its MYR 3.5 billion program but may also tap the conventional bond market next year to refinance debts.

TAQA which invests in the energy sector globally set up the Malaysian ringgit program in early October. The program is aimed at diversifying its funding sources.

Mr Stephen Kersley CFO of TAQA said that "We have a lot of debt in the next two years to refinance and it gives us another string to our bow.”

TAQA's debt includes USD 3.5 billion in maturing bonds and USD 500 million in bank credit. While TAQA may not go to the Malaysian market until the H1 of 2012, despite what Mr Kersley said was a very strong appetite there it may launch a conventional bond next year.

He said that it is possible, it is an option. It will be a mix but not at the same time. TAQA may also look at project financing from banks despite a tightening of credit by lenders.

There is a market there for well structured projects. The 75% Abu Dhabi government owned company had a debt ratio of 79% with a stated target of 70%. We are moving in the right direction. Its Q2 profit more than doubled helped by high oil prices and increased production in Britain. TAQA plans to announce Q3 results on November 15th 2011.

TAQA wants to invest in power production in Europe which would allow it to integrate its existing gas production and huge storage facility in the Netherlands.

(Sourced from Reuters)