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Abu Dhabi-listed TAQA Group has announced the pricing of dual tranche senior unsecured notes totalling $1.75 billion. The notes will be listed on the London Stock Exchange (LSE).
The utilities giant said the 12-year $850 million bond, which represents TAQA’s second green bond issuance, will mature on 9 March 2037 with a coupon rate of 4.75%. Net proceeds from the issuance will be used to finance, refinance and invest in green projects.
The remaining seven-year $900 million conventional bond has a maturity date of 9 October 2031 with a coupon rate of 4.375%. Proceeds from these bonds will be used for general corporate purposes. The transaction documents are expected to be signed on 7 October 2024 with settlement on 9 October 2024.
The notes form part of TAQA’s global medium-term note programme and are expected to be rated Aa3 by Moody’s and AA by Fitch.
Joint lead managers and bookrunners were Bank of China Limited, Barclays Bank PLC, Citigroup Global Markets Limited, First Abu Dhabi Bank (FAB) J.P. Morgan Securities plc, Mizuho International plc, MUFG Securities EMEA plc, and Natixis.
Jasim Husain Thabet, TAQA’s Group CEO and managing director said: “TAQA's latest green bond offering underscores our continued ability to secure competitive financing while advancing our ESG and decarbonisation agenda.
“This issuance, the second under TAQA’s Green Finance Framework, reflects the increasing investor appetite for credible green investments that align with our ambitious growth targets,” he added.
(Writing by Imogen Lillywhite; editing by Seban Scaria)
