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The Noor power plant owned by TAQA in Abu Dhabi. (supply)
Abu Dhabi’s national energy company, TAQA, has issued dual-tranche senior unsecured notes worth US$1.5 billion in five-year and ten-year terms, the Emirates News Agency (WAM) reported on Tuesday.
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The notes represent TAQA’s first green bond issue, with the net proceeds to be used to finance, refinance and invest in green projects, WAM reported.
The US$500 million five-year notes due January 24, 2029 were issued as conventional bonds with a coupon rate of 4.375%. Proceeds from these bonds will be used for general corporate purposes.
With a final order book approaching US$15 billion, the transaction was nearly 10 times oversubscribed, meeting demand from domestic, regional and international investors.
The offering is being managed through a joint lead of BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, IMI-Intesa Sanpaolo, Scotiabank, SMBC Nikko Bank and Standard Chartered Bank Arranged and issued by a consortium of bookrunners and bookrunners.
TAQA has also received support from Citibank, Standard Chartered, MUFG and HSBC as sustainability co-banks, and First Abu Dhabi Bank (FAB) as advisor to the Financial Framework for Sustainable Development.
Jasim Husain Thabet, Group CEO and Managing Director of TAQA, said: “TAQA’s balance between ambitious growth targets and solid returns, while working towards a net-zero future, demonstrates that the utility is in the ‘Year of Sustainability’. commitment to sustainable development.”
Stephen Ridlington, TAQA Group Chief Financial Officer, added: “The successful completion of this latest dual tranche bond issue was several times oversubscribed, reinforcing investor confidence in TAQA’s financial fundamentals .”
“The company once again achieved a very competitive financing rate and locked in a rate that was broadly in line with our existing corporate interest costs. We are pleased with these results, especially given the upward trend in interest rates since last year.”
read more:
Abu Dhabi’s TAQA to sell two tranches of bonds on Monday: documents
Abu Dhabi utility major TAQA establishes new green finance framework
UAE’s TAQA, ADNOC and Mubadala complete landmark Masdar stake deal
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