TAQA’s $1.5bn dual-tranche bonds listed on Abu Dhabi Exchange

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The 5-year $500 million notes, maturing in 2029, were issued as conventional bonds with a 4.375% coupon. (WAM)
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  • The five-year $500 million notes, maturing in 2029, were issued as conventional bonds with a 4.3 percent coupon.
  • The 10-year $1 billion tranche, maturing in 2033, was priced with a 4.6 percent coupon – with coupon payments being made to bondholders on a semi-annual basis.

Abu Dhabi, UAE — Abu Dhabi National Energy Company (TAQA’s) dual-tranche $1.5 billion bonds were listed on Abu Dhabi Securities Exchange (ADX) Thursday.

The five-year $500 million notes, maturing in 2029, were issued as conventional bonds with a 4.3 percent coupon, while the 10-year $1 billion tranche, maturing in 2033, was priced with a 4.6 percent coupon – with coupon payments being made to bondholders on a semi-annual basis.

The 10-year notes were structured as green notes – TAQA’s first green issuance – with the proceeds being used to finance, refinance and invest in eligible green projects in line with TAQA’s Green Finance Framework.

The dual-tranche senior unsecured notes – which form part of TAQA’s Global Medium Term Note Programme – will now be listed on both ADX and the London Stock Exchange (LSE). This listing brings the overall debt instruments listed on ADX to 44.

At the time of issuance, the order book was nearly 10 times oversubscribed, with regional and international investors placing total orders of over $15 billion. In line with TAQA’s corporate credit rating, the notes are rated Aa3 by Moody’s and AA- by Fitch.

Jasim Husain Thabet, TAQA’s Group Chief Executive Officer, said, “As a low-carbon power and water champion, we see green finance and decarbonization projects as key growth opportunities for our business driven by local and international investors’ growing demand for credible green investments.

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