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Friday, December 8, 2023

Taqa’s Inaugural Green Bond Set to Be Listed on ADX

The Abu Dhabi National Energy Company PJSC (Taqa) has successfully listed its dual-tranche $1.5 billion bonds on the main market of the Abu Dhabi Securities Exchange (ADX).

The offering includes five-year $500 million notes maturing in 2029, issued as conventional bonds with a 4.375 percent coupon, and ten-year $1 billion notes maturing in 2033, priced with a 4.696 percent coupon, with semi-annual coupon payments to bondholders.

Notably, the ten-year notes are structured as green bonds, marking Taqa’s first green issuance. The proceeds from these green bonds will be used to finance, refinance, and invest in eligible green projects in line with Taqa’s Green Finance Framework.

These dual-tranche senior unsecured notes, part of Taqa’s global medium-term note program, will be listed on both ADX and the London Stock Exchange (LSE), bringing the total number of debt instruments listed on ADX to 44.

Abdulla Salem Alnuaimi, CEO of the Abu Dhabi Securities Exchange, emphasized that Taqa’s significant secondary bond listing reflects ADX’s commitment to expanding its debt market offerings, highlighting the rise of green bonds among ADX-listed companies, in line with ESG and sustainability efforts.

Jasim Husain Thabet, Taqa’s Group CEO and Managing Director, expressed Taqa’s pleasure at the listing of their dual-tranche bonds on the Abu Dhabi debt market, including their inaugural green bond issuance. He highlighted Taqa’s focus on green finance and decarbonization projects as growth opportunities, aligning with investor demand for credible green investments.

The issuance was nearly 10 times oversubscribed, reflecting strong investor interest and confidence in Taqa’s financial position. Moody’s rates the notes as Aa3, while Fitch assigns a rating of AA-, reflecting Taqa’s strong financial position and Abu Dhabi’s favorable macroeconomic outlook.

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