Gulf News reported that Abu Dhabi National Energy Company move to buy back AED 5.5 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% 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 global program.

Mr Chavan Bhogaita head of the markets strategy unit at National Bank of Abu Dhabi said that "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. This strategy means all these things can be achieved without affecting the company's overall level of indebtedness."

(Sourced from Gulf News)