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The Abu Dhabi-based Dhafrah PV2 Energy Company’s $870.75 million 27.5-year green bond, with a 17-year weighted average life (WAL), drew a tight spread of 100 basis points over US Treasuries from initial price thoughts in the T+130 bps area.
The issuance has a coupon of 5.794%, with a similar yield, and a re-offer price at par.
The utilities firm behind Abu Dhabi’s Al Dhafrah PV2 solar photovoltaic plant (ADPV2) saw its book size rise to $2.1 billion, excluding JLM interest, for the Regulation S benchmark sized amortizing Eurobond.
The company, rated A3 by Moody’s and A by S&P with a stable outlook, mandated BNP PARIBAS and HSBC as joint global coordinators, and along with Crédit Agricole CIB, MUFG, Standard Chartered Bank and SMBC as joint lead managers and bookrunners.
The expected rating of the bond is A3 by Moody’s and A by S&P.
Shareholders in Dhafrah PV2 Energy include the Abu Dhabi National Energy Company PJSC (TAQA), the Abu Dhabi Future Energy Company PJSC (Masdar), along with the France-based EDF Renewables and China’s Jinko Power (HK) Company Limited.
Proceeds from the issuance will be used to finance or refinance the expenditure related to ADPV2 as detailed in its Green Bond Framework.
(Writing by Bindu Rai, editing by Seban Scaria)
