Taqa Prices $1.75B Dual-Tranche Bonds As Orderbook Oversubscribed Three Times

(MENAFN- Khaleej Times) Abu Dhabi National Energy Company (Taqa) has priced a $1.75 billion dual-tranche bond offering, setting a coupon of 5.875 per cent on $1.1 billion of green notes and 6.125 per cent on $650 million of conventional notes.

The green notes mature on April 26, 2032, while the conventional notes mature on October 26, 2036. The orderbook was more than three times oversubscribed, with demand from domestic, regional and international investors.

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The notes are expected to be rated Aa3 by Moody's and AA by Fitch, in line with Taqa's corporate credit ratings, and will be listed on the London Stock Exchange.

The energy company said the oversubscription reflects investor confidence in its credit quality and long-term strategy. The deal is the first public benchmark issued by an Abu Dhabi government-related entity (GRE) since March 2026. The company said this points to sustained appetite for high-quality Abu Dhabi credit and its ability to access competitive funding across market conditions.

The transaction was led by joint bookrunners and joint lead managers Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, J.P. Morgan, Mashreq and Standard Chartered Bank. Citi, HSBC and Standard Chartered Bank acted as joint green structurers.

Use of proceeds

The green tranche will finance or refinance eligible renewable energy generation and green grid projects in line with Taqa's Green and Blue Finance Framework. The framework includes network infrastructure as a permitted use of proceeds, reflecting the Climate Finance Principles for Green Grids, which were developed by the Green Grids Initiative and endorsed by the COP30 Presidency.

Proceeds from the conventional tranche will be used for general corporate purposes.

Together, the two tranches contribute to Taqa's 2030 Vision for Sustainable and Profitable Growth, under which the group invested close to $10 billion in energy transition projects between 2021 and 2025.

“The quality of investor demand reflects confidence in our financial strength and our ability to deliver on our long-term strategy. It also underscores the importance of this issuance's purpose: renewable power only creates value when networks can deliver it to the homes and businesses that need it,” said Jasim Husain Thabet, group CEO and managing director of Taqa.

“Our disciplined approach to capital management, and a balance sheet that remains strong, give us competitive access to funding and the flexibility to keep investing in resilient grids, renewable energy and sustainable water solutions,” he added.

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