Abu Dhabi National Energy Company PJSC (TAQA), one of the largest listed integrated utilities companies in Europe, the Middle East and Africa, announced today the successful pricing of an aggregate $1.75 billion in seven-year and 12-year dual-tranche senior unsecured notes.
The 12-year notes, sized at $850 million and maturing on March 9, 2037, bear a coupon rate of 4.75 percent. 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.
Meanwhile, the seven-year notes, sized at $900 million and maturing on October 9, 2031, are conventional bonds bearing a coupon rate of 4.375 percent. Proceeds from these bonds will be used for general corporate purposes. The transaction documents are expected to be signed on October 7, 2024 with settlement on October 9, 2024.
Strong demand
The transaction benefitted from strong demand from domestic, regional and international investors. The notes 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 bookrunners comprising Bank of China Limited, Barclays Bank PLC, Citigroup Global Markets Limited, First Abu Dhabi Bank PJSC, J.P. Morgan Securities plc, Mizuho International plc, MUFG Securities EMEA plc, and Natixis.
Boosting low-carbon portfolio
TAQA, aiming to boost its low-carbon energy portfolio and enhance its core businesses, has secured $1.85 billion under its Green Finance Framework since 2023. Moreover, this funding has been instrumental in accelerating the growth of its renewables portfolio and driving strategic acquisitions within the group.
Jasim Husain Thabet, TAQA’s group CEO and managing director, said: “TAQA’s latest green bond offering underscores our continued ability to secure competitive financing while advancing our ESG and decarbonization 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. 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.”
Stephen Ridlington, TAQA’s group chief financial officer, commented: “The successful completion of this dual-tranche bond offering underscores investors’ confidence in TAQA’s financial strength. 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.”
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