Abu Dhabi Securities Exchange (ADX) has announced the secondary listing of Abu Dhabi National Energy Company’s (TAQA) dual-tranche $1.5 billion bonds on its main market.
The five-year $500 million notes, maturing in 2029, were issued as conventional bonds with a 4.375% coupon, while the 10-year $1 billion tranche, maturing in 2033, was priced with a 4.696% coupon – with coupon payments being made to bondholders on a semi-annual basis.
Moreover, the 10-year notes were structured as green notes – TAQA’s first green issuance – with the proceeds being used to finance, refinance, and invest in eligible green projects in line with TAQA’s Green Finance Framework.
The dual-tranche senior unsecured notes – which form part of TAQA’s Global Medium Term Note Programme – will now be listed on both ADX and the London Stock Exchange (LSE). This listing brings the overall debt instruments listed on ADX to 44.
In a statement to ADX, ADX CEO Abdulla Salem Alnuaimi said that TAQA’s secondary bond listing reflected the bourse’s ongoing efforts to increase the number of listings across growing debt market of ADX. In line with these efforts, ADX continues to demonstrate its ability to diversify and broaden the range of securities on offer across ADX markets to benefit of our market participants.
“This listing also demonstrates the increasing prevalence of bonds that have witnessed a sharp rise with numerous ADX-listed companies issuing green bonds. Aligned to green finance frameworks, these issuances support the continued development of ESG and sustainability across our market, aligned with the UAE’s efforts and net zero ambitions,” Alnuaimi added.
TAQA’s Group CEO Jasim Husain Thabet said that as a low-carbon power and water champion, TAQA sees green finance and decarbonisation projects as key growth opportunities for our business driven by local and international investors’ growing demand for credible green investments.
“Furthermore, we are positioning ourselves as one of the region’s leaders when it comes to green financing with our Green Finance Framework, our ESG Strategy and 2030 emissions reduction targets. TAQA represents the energy transition in action with ambitious decarbonisation targets and a credible strategy to get us there,” he added.
At the time of issuance, the order book was nearly 10 times oversubscribed, with regional and international investors placing total orders of over $15 billion. In line with TAQA’s corporate credit rating, the notes are rated Aa3 by Moody’s and AA- by Fitch, reflecting TAQA’s robust financial position and Abu Dhabi’s strong macroeconomic fundamentals and outlook.
Established in 2005, TAQA is a diversified utilities and energy group headquartered in Abu Dhabi and listed on the ADX. It has significant investments in power and water generation, transmission, and distribution assets, as well as upstream and midstream oil and gas operations.
The Company’s assets are in the US, the UK, the UAE as well as Canada, Ghana, India, Iraq, Morocco, Oman, the Netherlands, and Saudi Arabia.