[ad_1]
TAQA, also known as the Abu Dhabi National Energy Company, has issued a $1.5 billion dual-tranche bond, the utility’s first green bond following the launch of a new green finance framework.
The 10-year note has a size of US$1 billion and will mature on April 24, 2033. It will be issued as a green bond with a coupon rate of 4.696%. The proceeds will be used for financing, refinancing and investment in related qualified green projects.
The $500 million five-year notes, due January 24, 2029, were issued as conventional bonds at a coupon rate of 4.375%, with proceeds to be used for general corporate purposes.
“With final order books approaching $15 billion, the deal was almost 10 times oversubscribed, with strong demand from domestic, regional and international investors,” TAQA said in a filing to the exchange.
Based on the company’s corporate credit rating, the notes are expected to be rated Aa3 by Moody’s and AA by Fitch.
Jasim Husain Thabet, Group CEO and Managing Director of TAQA, said: “TAQA has once again secured competitive funding in our latest bond issue, which has attracted strong demand from multiple capital market investors.”
“Following the launch of a new green finance framework, TAQA’s ESG strategy and decarbonization agenda enabled us to finalize our first-ever green bond and enabled us to meet the growing demand from investors seeking reliable green investment opportunities,” Thabet added.
TAQA Group completes $1.5 billion dual 5-year and 10-year bond offering #WamNews https://t.co/8nvZhv905d pic.twitter.com/yvLOKuTACc
— WAM English (@WAMNEWS_ENG) April 18, 2023
BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank (FAB), HSBC, Industrial and Commercial Bank of China, IMI-Intesa Sanpaolo, Scotiabank, SMBC Nikko Bank and Standard Chartered Bank are the fiduciary bookrunners and lead managers. run people.
FAB, HSBC and Standard Chartered are joint green structure advisors.
TAQA’s Green Finance Framework
Meanwhile, the company unveiled a green finance framework for issuing green bonds, sukuk, loans and other debt instruments in early April.
Proceeds from the offering will be used to fund eligible green projects, including renewable energy, energy efficiency, sustainable water and wastewater management and clean transportation, and terrestrial and aquatic biodiversity, the utility said.
read: UAE utility TAQA sets up green finance framework
TAQA says its green finance framework is in line with global best practice set out under TAQA’s four core components Green Bond Principles 2021 Published by the International Capital Markets Association.
The financing framework has a Sustainability Quality Score of SQS2 (Very Good) – the second highest rating under Moody’s Second Party Opinion (SPO) scoring framework, meaning it makes a significant contribution to sustainability.
The company unveiled its 2030 ESG strategy in October 2022, with medium-term greenhouse gas reduction targets of 25% reduction in scope 1 and scope 2 emissions and 33% reduction in UAE portfolio emissions from 2019 as a baseline.
It aims to have renewables account for 30% of its power generation by that date, a process it said it accelerated by acquiring a 43% stake in Abu Dhabi-based Masdar’s renewable energy business.
The company’s annual revenue jumped 10.3% to Dh50 billion, driven by higher oil prices averaging nearly $100 a barrel in 2022. The company reported full-year net income of AED8 billion, up AED2 billion, driven by bottom-line growth supported by the company’s oil and gas segment and lower depreciation charges. Company shareholders approved a special dividend of 2.1 fils per share for fiscal year 2022, bringing the total dividend to 5.1 fils.
read: UAE power and water firm Taqa seeks to cut emissions by 2030
[ad_2]
Source link