Abu Dhabi – Mubasher: Abu Dhabi National Energy Company (TAQA) has completed the pricing of dual-tranche senior unsecured notes at an aggregated value of $1.75 billion, on the back of strong demand from domestic, regional, and international investors.
The notes included a $850 million 12-year green bond offering, which is the second under TAQA’s Green Finance Framework, maturing on 9 March 2037 with a coupon rate of 4.75%. The net proceeds of the issuance will be used to finance, refinance, and invest in relevant eligible green projects, according to a bourse filing.
The second tranche is seven-year notes sized at $900 million and will mature on 9 October 2031, under the type conventional bonds bearing a coupon rate of 4.375%. The proceeds from these bonds will be used for general corporate purposes.
TAQA noted that the transaction documents are expected to be signed on 7 October 2024 with settlement to follow on 9 October.
Group CEO and Managing Director of TAQA, Jasim Husain Thabet, said: “TAQA's latest green bond offering underscores our continued ability to secure competitive financing while advancing our ESG and decarbonisation agenda.”
The notes are part of TAQA’s Global Medium Term Note Programme and 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).
Thabet noted: “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.”
Since 2023, TAQA has secured $1.85 billion under its Green Finance Framework with the goal of bolstering its low-carbon energy portfolio and enhancing its core businesses.
The Group CEO concluded: “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.”
A syndicate of joint lead managers and bookrunners have offered and arranged the notes, including Bank of China Limited, Barclays Bank PLC, and Citigroup Global Markets Limited, in addition to First Abu Dhabi Bank PJSC (FAB), J.P. Morgan Securities plc, Mizuho International plc, MUFG Securities EMEA plc, and Natixis.
It is worth noting that in the first half (H1) of 2024, TAQA posted net profits worth AED 4.59 billion, which came lower than AED 13.66 billion in H1-23.
Last month, the company entered into a joint agreement with France’s SUEZ and German firm Siemens to ensure sustainable and affordable access to water for communities in emerging countries.
