Abu Dhabi’s TAQA successfully issues $1.5 billion worth of bonds

Abu Dhabi’s National Energy Company TAQA has issued bonds worth $1.5 billion in five-year and ten-year dual-tranche senior unsecured notes, the Emirates News Agency (WAM) reported on Tuesday.

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The notes represent TAQA’s first green bond issuance and net proceeds will be used to finance, refinance, and invest in green projects, WAM reported.

The 5-year notes, sized at $500 million and maturing on 24th January 2029, were issued as conventional bonds at a coupon rate of 4.375 percent. Proceeds from these bonds will be used for general corporate purposes.

With a final order book approaching $15 billion, the transaction was almost 10 times oversubscribed with demand from domestic, regional, and international investors.

The issuance was arranged and offered through a syndicate of joint lead managers and book runners comprising of BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, IMI-Intesa Sanpaolo, Scotiabank, SMBC Nikko, and Standard Chartered.

TAQA also received support from Citi, Standard Chartered Bank, MUFG, and HSBC as Joint Sustainability Structuring Banks alongside First Abu Dhabi Bank (FAB) as Sustainability Finance Framework Advisor.

Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director, said: “TAQA's success in balancing ambitious growth targets with solid returns while working towards a net-zero future demonstrates the utility company's commitment to sustainability in the ‘Year of Sustainability’.”

Stephen Ridlington, TAQA’s Group Chief Financial Officer, added: “The successful completion of this latest dual-tranche bond offering, which was several times oversubscribed, reinforces investors’ confidence in the financial fundamentals of TAQA.”

“The Company has once again achieved very competitive funding rates and locked in interest rates largely in line with our existing corporate interest cost. We are pleased with these results, particularly considering the trend of rising interest rates since last year.”

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