Abu Dhabi utility Taqa prices dual-tranche $1.75 billion bond

Dubai: The Abu Dhabi utility company Taqa has priced its $1.75 billion bond issue, which will be split into a 7- and 12-year dual-tranche senior unsecured notes.

The 12-year notes, of $850 million and maturing March 9, 2037, carry a coupon rate of 4.75%. This will be Taqa’s second green bond issuance and net proceeds will go to finance, refinance and invest in ‘relevant eligible green projects’ as per the company’s ‘geen finance framework”.
The 7-year notes, of $900 million and maturing October 9, 2031, are conventional bonds bearing a coupon of 4.375%. Proceeds from these bonds are for general corporate purposes.

The transaction documents are expected to be signed on October 7, 2024 and with settlement on October 9.

The transaction ‘benefitted from strong demand from domestic, regional, and international investors’.It forms part of Taqa’s Global Medium Term Note Programme and will likely be rated at Aa3 by Moody’s and AA by Fitch, in line with Taqa’s corporate credit rating. The new tranches will be listed on the London Stock Exchange (LSE).
TAQA, which is aiming to bolster its low-carbon energy portfolio, secured $1.85 billion under its Green Finance Framework since 2023.

“The successful completion of this dual-tranche bond offering underscores investors’ confidence in Taqa’s financial strength,” said Stephen Ridlington, Taqa’s Group Chief Financial Officer. “We’ve once again secured highly competitive funding terms, locking in interest rates that align closely with our existing corporate debt costs.”