Abu Dhabi National Energy Company’s (TAQA) financial strength and investor’s confidence in the largest listed utility company in the EMEA region was on display once again when it successfully priced a total of $1.75 billion in 7-year and 12-year dual-tranche senior unsecured notes.
The 12-year notes, TAQA’s second green bond issuance, are for a total of $850 million and bear a coupon rate of 4.75 per cent. They mature on 9 March 2037. Net proceeds of the issuance will be used to finance, refinance and invest in relevant eligible green projects, as outlined in the company’s Green Finance Framework.
TAQA’s latest green bond offering
The $900 million 7-year notes mature on 9 October 2031. They are conventional bonds bearing a coupon rate of 4.375 per cent. The proceeds will be used for general corporate purposes.
There was a strong demand from domestic, regional, and international investors for the Notes, which form part of TAQA’s Global Medium Term Note Programme. They will be listed on the London Stock Exchange (LSE) and are expected to be rated Aa3 by Moody’s and AA by Fitch, in line with the company’s corporate credit rating.
Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, commented: “TAQA’s latest green bond offering underscores our continued ability to secure competitive financing while advancing our ESG and decarbonisation agenda.
“This issuance, the second under TAQA’s Green Finance Framework, reflects the increasing investor appetite for credible green investments that align with our ambitious growth targets.
“It also demonstrates our commitment to financing sustainable solutions that provide low-carbon and reliable power and water while delivering long-term sustainable value for our shareholders.”
The transaction documents are expected to be signed on 7 October with settlement on 9 October. The offering was arranged and offered through a syndicate of joint lead managers and bookrunners comprising of Bank of China Limited, Barclays Bank PLC, Citigroup Global Markets Limited, First Abu Dhabi Bank PJSC, JP Morgan Securities plc, Mizuho International plc, MUFG Securities EMEA plc, and Natixis.
Stephen Ridlington, Group Chief Financial Officer, added: “We’ve once again secured highly competitive funding terms, locking in interest rates that align closely with our existing corporate debt costs, as we maintain our investment-grade credit profile. This transaction will significantly contribute to our pursuit of funding of future growth initiatives.”
Established in 2005, the recently rebranded TAQA is a diversified utilities and energy group listed on the Abu Dhabi Securities Exchange (ADX). It has significant investments in power and water generation, water treatment and reuse, transmission and distribution assets, as well as upstream and midstream oil and gas operations.
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