Abu Dhabi National Energy Company PJSC (TAQA) has successfully priced $1.75 billion in dual-tranche senior unsecured notes, further strengthening its position in global financial markets.
The bond issuance, announced on October 4, 2024, includes a $900 million 7-year conventional bond and an $850 million 12-year green bond, marking TAQA’s second green issuance under its Green Finance Framework.
The $900 million 7-year tranche will mature on October 9, 2031, offering a coupon rate of 4.375%. The proceeds from this conventional bond will be used for general corporate purposes, supporting TAQA’s ongoing business operations. The 12-year green bond, sized at $850 million and set to mature on March 9, 2037, carries a coupon rate of 4.75%. Funds raised from the green bond will be allocated to finance and invest in eligible green projects aimed at enhancing TAQA’s low-carbon energy portfolio.
The issuance saw robust demand from domestic, regional, and international investors, reflecting TAQA’s strong market standing and the growing appetite for sustainable investment options. The bonds, which are part of TAQA’s Global Medium Term Note Programme, are expected to receive high credit ratings of Aa3 from Moody’s and AA from Fitch, matching the company’s corporate credit rating. The notes will be listed on the London Stock Exchange (LSE).
Jasim Husain Thabet, TAQA’s Group CEO and Managing Director, commented on the issuance, saying, “TAQA’s latest green bond offering underscores our continued ability to secure competitive financing while advancing our ESG and decarbonisation agenda. This issuance reflects the increasing investor appetite for credible green investments that align with our ambitious growth targets.”
The transaction is set to close on October 7, 2024, with settlement on October 9. The bond offering was arranged by a syndicate of joint lead managers and bookrunners, including major global financial institutions such as Bank of China, Barclays, Citigroup, First Abu Dhabi Bank, J.P. Morgan, Mizuho, MUFG, and Natixis.
Stephen Ridlington, TAQA’s Group Chief Financial Officer, added, “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.”
Since launching its Green Finance Framework in 2023, TAQA has raised $1.85 billion to fuel its expansion into renewables and drive strategic acquisitions aimed at advancing its decarbonisation goals.
The latest issuance not only supports the company’s green initiatives but also reinforces its commitment to providing reliable, low-carbon energy solutions for communities and businesses while delivering long-term sustainable value for shareholders.
Last year, TAQA introduced its Green Finance Framework, designed to facilitate the issuance of green bonds, sukuks, loans, and other debt instruments. Proceeds from the issuances are directed towards eligible green projects, such as renewable energy, energy efficiency, sustainable water and wastewater management, clean transportation, and biodiversity initiatives.
These projects are critical to achieving TAQA’s 2030 ESG goals and its long-term commitment to net-zero emissions.
The framework aligns with international best practices, adhering to the four core components of the Green Bond Principles 2021, established by the International Capital Market Association (ICMA).
To validate its sustainability credentials, TAQA secured a Second Party Opinion (SPO) from Moody’s Investor Services. Moody’s rated the framework with a Sustainability Quality Score (SQS) of SQS2 (Very Good), the second-highest rating under their scoring system, highlighting its strong contribution to sustainability.
In July, Masdar, the UAE’s leading clean energy company, raised $1 billion through its second green bond issuance, following its successful $750 million debut last year. The funds will be used to finance new greenfield renewable energy projects under Masdar’s Green Finance Framework.
The issuance consisted of two $500 million tranches, with tenors of 5 and 10 years, carrying coupon rates of 4.875% and 5.25%, respectively. Investor interest was strong, with the orderbook reaching $4.6 billion, indicating a 4.6x oversubscription.
Masdar is owned by TAQA, Mubadala, and ADNOC, with stakes of 43%, 33%, and 24%, respectively.
