Meed | Taqa prices green and conventional bonds

Taqa prices green and conventional bonds

7 October 2024

Abu Dhabi National Energy Company (Taqa) has announced the successful pricing of an aggregate $1.75bn in seven-year and 12-year dual-tranche senior unsecured notes.

The 12-year notes, sized at $850m and maturing on 9 March 2037, bear a coupon rate of 4.75%.

These notes represent Taqa’s second green bond issuance, the net proceeds of which will be used to finance, refinance and invest in relevant eligible green projects, as outlined in the company’s Green Finance Framework.

The seven-year notes, sized at $900m and maturing on 9 October 2031, are conventional bonds bearing a coupon rate of 4.375%.

Proceeds from these bonds will be used for general corporate purposes.

The transaction documents are expected to be signed on 7 October 2024 with settlement on 9 October 2024.

According to Taqa, the transaction benefitted from strong demand from domestic, regional and international investors.

The notes form part of Taqa’s Global Medium Term Note Programme. The company expects the notes to receive an Aa3 rating from Moody’s and AA from Fitch, in line with the company's corporate credit rating, to be listed on the London Stock Exchange (LSE).

A syndicate of joint lead managers and bookrunners arranged the offering. They comprise Bank of China, Barclays Bank, Citigroup Global Markets, First Abu Dhabi Bank, JP Morgan Securities, Mizuho International, MUFG Securities EMEA and Natixis.

Taqa has secured $1.85bn under its Green Finance Framework since 2023. The firm said the funding has been “instrumental in accelerating the growth of its renewables portfolio and driving strategic acquisitions within the group”.

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Jennifer Aguinaldo