TAQA launches dual-tranche dollar bonds for green financing
Arabian Post Staff -Dubai Abu Dhabi National Energy Company (TAQA) has launched a dual-tranche US dollar bond offering, targeting international investors as the utility group seeks financing for eligible green projects and other corporate requirements. The transaction, launched on Monday, October 19, comprises a long five-year tranche and a 10-year tranche of senior unsecured notes. Initial…
Dubai-based Abu Dhabi National Energy Company, known as TAQA, has launched a dual-tranche US dollar bond offering to finance eligible green projects and other corporate needs. The transaction, which went live on October 19, includes a five-year and a ten-year tranche of senior unsecured notes. Initial discussions placed the shorter maturity at around 130 basis points above US Treasury yields and the longer maturity at approximately 140 basis points.
Settlement is expected on October 26, with the five-year tranche maturing on April 26, 2032, and the ten-year tranche on October 26, 2036. The final pricing, individual tranche amounts, and total raised funds have not been independently confirmed yet. The offering builds upon TAQA's $1.75 billion dual-tranche bond placement in October 2024, which consisted of $900 million in seven-year notes and $850 million in 12-year green bonds.
The latest transaction is governed by Rule 144A and Regulation S, permitting securities to be marketed to qualified institutional buyers in the United States and eligible international investors, as per applicable securities regulations. TAQA has enlisted nine financial institutions as joint bookrunners and lead managers, with Citi, HSBC, and Standard Chartered also serving as joint green structurers.
The proposed notes are anticipated to hold investment-grade ratings aligned with TAQA's current credit profile, with anticipated ratings of Aa3 from Moody’s and AA from Fitch, pending final confirmation. The proceeds will be utilized for financing or refinancing qualifying green investments under TAQA's Green and Blue Finance Framework, with any remaining funds available for general corporate purposes.
The bonds will be issued through TAQA's $20 billion Global Medium Term Note Programme, providing access to international debt markets through successive securities offerings. A listing on the London Stock Exchange's Main Market is planned, granting the securities access to an established international venue for fixed-income investors.
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