Abu Dhabi National Energy Co. (TAQA) has placed an aggregate of $1.5 billion in 5-year and 10-year dual-tranche senior unsecured notes.
The $1billion 10-year notes which will mature on 24 April 2033, were issued at a coupon rate of 4.696%, the integrated utility firm said in a statement on Tuesday.
They represent TAQA’s first green bond issuance and net proceeds of the issuance will be used to finance, refinance and invest in relevant eligible green projects, as outlined in the company’s Green Finance Framework.
The 5-year notes, sized at $500 million and maturing on 24 January 2029, were issued as conventional bonds at a coupon rate of 4.375%. Proceeds from these bonds will be used for general corporate purposes.
The issuance drew strong investor demand and the final order book approached $15 billion, it said.
The issuance was arranged and offered through a syndicate of joint lead managers and bookrunners comprising of BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, IMI-Intesa Sanpaolo, Scotiabank, SMBC Nikko and Standard Chartered.
Earlier this week, TAQA unveiled its Green Finance Framework to issue green bonds, sukuks, loans and other debt instruments, to contribute to its ESG targets and the UAE’s Net Zero by 2050 ambitions.
(Reporting by Brinda Darasha; editing by Seban Scaria)