Abu Dhabi National Energy Co. has concluded a $1.5 billion bond offering that will be used to fund, refinance, and invest in green initiatives as well as meet corporate goals.
The company, also known as TAQA, said that the placement included senior unsecured notes with dual-tranche maturities of five and ten years. It further stated that the $1 billion, 10-year notes, which mature in April 2033, were issued at a coupon rate of 4.7 percent.
These bonds represent the conclusion of the company’s first-ever green bond offering, with the proceeds going toward green initiatives in accordance with the company’s Green Finance Framework.
The $500 million five-year notes were issued at a coupon rate of 3.38 percent and would be utilized for business purposes.
“TAQA’s success in balancing ambitious growth targets with solid returns while working towards a net-zero future demonstrates the utility company’s commitment to sustainability in the ‘Year of Sustainability,'” stated Jasim Husain Thabet, group CEO and managing director of TAQA.
The order book was over ten times oversubscribed, according to the release, and there was strong interest from domestic, regional, and foreign investors.
The announcement further stated that a syndicate of joint lead managers and book runners, including BNP Paribas, Emirates NBD Capital, and First Abu Dhabi Bank, organized and marketed the offering.
Along with Scotiabank, SMBC Nikko, and Standard Chartered, other parties engaged included HSBC, ICBC, and IMI-Intesa Sanpaolo.
According to Stephen Ridlington, group chief financial officer of TAQA, “the successful completion of this most recent dual-tranche bond offering, which was several times oversubscribed, reinforces investors’ confidence in the financial fundamentals of TAQA.”
The firm has once again secured capital at extremely competitive rates, and interest rates have been essentially locked in at levels that are comparable to our current corporate interest expense, he continued. Given the trend of rising interest rates since last year, we are happy with these outcomes.