Abu Dhabi National Energy Company PJSC, also known as Taqa, recently announced the successful pricing of $1.75 billion in 7-year and 12-year dual-tranche senior unsecured notes. The 12-year notes, sized at $850 million, will mature on 9 March 2037 and have a coupon rate of 4.75 per cent. This issuance represents Taqa’s second green bond and the proceeds will be used for eligible green projects. The second tranche, sized at $900 million and maturing on October 9, 2031, will be used for general corporate purposes. The transaction documents are expected to be signed soon with settlement on October 9.
The notes 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 Taqa. The notes will be listed on the London Stock Exchange and form part of Taqa’s Global Medium Term Note Programme. The offering was arranged and offered through a syndicate of joint lead managers and bookrunners including Bank of China Limited, Barclays Bank PLC, and Citigroup Global Markets Limited, among others.
Since 2023, Taqa has secured $1.85 billion under its Green Finance Framework, aiming to enhance its low-carbon energy portfolio and core businesses. This funding has accelerated the growth of its renewables portfolio and strategic acquisitions within the Group. Jasim Husain Thabet, Taqa’s Group CEO and MD, reiterated their commitment to ESG and decarbonisation, noting the increasing demand for green investments aligning with their growth targets. The bond offering reflects Taqa’s dedication to financing sustainable solutions that provide low-carbon power and water for communities.
Stephen Ridlington, Taqa’s group CFO, highlighted the success of the bond offering as a testament to investors’ confidence in Taqa’s financial strength. The funding terms secured were highly competitive, aligning with their existing corporate debt costs and maintaining an investment-grade credit profile. This transaction is expected to contribute significantly to funding future growth initiatives. Taqa’s commitment to advancing ESG and decarbonisation through sustainable investments demonstrates their focus on long-term sustainable value for shareholders and communities.
In conclusion, Taqa’s successful issuance of $1.75 billion in 7-year and 12-year dual-tranche senior unsecured notes reflects the company’s commitment to financing green initiatives and sustainable solutions. This funding will support the growth of Taqa’s renewables portfolio and strategic acquisitions, aligning with their ESG and decarbonisation goals. The strong demand for the notes from various investors reaffirms confidence in Taqa’s financial strength and investment-grade credit profile. Through this bond offering, Taqa aims to deliver long-term sustainable value for shareholders while providing low-carbon power and water for communities and businesses.
