* 10-year sukuk carries 4.65 pct profit rate
* Sukuk upsized due to strong investor demand
* TAQA set up 3.5 bln ringgit bond program last year
By Stanley Carvalho
ABU DHABI, Feb 26 Abu Dhabi National
Energy Co (TAQA) raised $215 million from the sale of
a Malaysian ringgit-denominated Islamic bond, or sukuk, it said
on Sunday, as part of plans by the state-run oil and gas utility
to diversify its funding sources.
The ten-year sukuk carried a 4.65 percent profit rate with a
full swapped rate to U.S. dollars of 5.3 percent, the company,
which owns assets in Canada and Europe, said in a statement.
TAQA, which is 75 percent owned by the government of Abu
Dhabi, upsized the bond from 500 million to 650 million
ringgits, due to strong investor demand from Malaysian asset
management companies and Islamic investors, the company said.
The sukuk was part of the firm's 3.5 billion Malaysian
ringgit sukuk programme, which was established late last year.
Gulf borrowers are tempted to explore financing options in
Malaysia to diversify funding sources away from dollar financing
and to tap into an Islamic investor base.
National Bank of Abu Dhabi and Abu Dhabi
Commercial Bank have both issued in ringgit
previously, in response to high demand from Malaysian investors
looking to gain international exposure in local currency.
"This successful transaction opens up a new market and debt
structure for TAQA," Stephen Kersley, chief financial officer of
TAQA said in the statement.
Standard Chartered was the lead arranger for the
Earlier this month, Malaysia's RAM Ratings assigned a
preliminary AA1 rating to TAQA's proposed sukuk Murabahah
programme of up to 3.5 billion ringgit
In December, TAQA sold $1.5 billion in bonds maturing in
five to ten years to refinance upcoming debt.
Abu Dhabi listed TAQA is a regular issuer of debt in global
markets and benefits from implicit backing from the Abu Dhabi
government as one of its strategic firms.
The emirate holds over 90 percent of the UAE's oil reserves.
(Additional reporting by David French; Editing by Dinesh Nair)