TAQA Prices Dual Tranche $1.75 Billion Bond

Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utilities companies in Europe, the Middle East and Africa, on Friday announced the successful pricing of an aggregate $1.75 billion in 7-year and 12-year dual-tranche senior unsecured notes.

The 12-year notes are sized at $850 million and maturing on 9 March 2037 bear a coupon rate of 4.75%. These notes represent TAQA’s second green bond issuance and 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.

The 7-year notes, sized at $900 million and maturing on 9 October 2031, are conventional bonds bearing a coupon rate of 4.375%. Proceeds from these bonds will be used for general corporate purposes.

The transaction documents are expected to be signed on 7 October 2024 with settlement on 9 October 2024, TAQA said in a regulatory filing with Abu Dhabi Securities Exchange (ADX) this morning.

The transaction benefitted from strong demand from domestic, regional, and international investors. The Notes, which form part of TAQA’s Global Medium Term Note Programme – are expected to be rated Aa3 by Moody’s and AA by Fitch, in line with the corporate credit rating of the company and listed on the London Stock Exchange (LSE).

The offering was arranged and offered through a syndicate of joint lead managers and book-runners comprising of Bank of China Limited, Barclays Bank, Citigroup Global Markets Limited, First Abu Dhabi Bank, J P Morgan Securities, Mizuho International, MUFG Securities EMEA, and Natixis.

TAQA, aiming to bolster its low-carbon energy portfolio and enhance its core businesses, has secured $1.85 billion under its Green Finance Framework since 2023. This funding has been instrumental in accelerating the growth of its renewables portfolio and driving strategic acquisitions within the Group.

Securing Competitive Financing

TAQA’s Group CEO and Managing Director Jasim Husain Thabet said that TAQA’s latest green bond offering underscores our continued ability to secure competitive financing while advancing our ESG and decarbonisation agenda.

He also said that this issuance, the second under TAQA’s Green Finance Framework, reflects the increasing investor appetite for credible green investments that align with TAQA’s ambitious growth targets.

He added: “The latest bond placement also demonstrates our commitment to financing sustainable solutions that provide low-carbon and reliable power and water for communities and businesses while delivering long-term sustainable value for our shareholders.”

TAQA’s Group Chief Financial Officer Stephen Ridlington said that the successful completion of this dual-tranche bond offering underscores investors’ confidence in TAQA’s financial strength.

“We have 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,” Ridlington added.