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Taqa lists $1.5bn green bonds on Abu Dhabi exchange

Taqa executives and ADX officials at the listing of Taqa's dual-tranche bonds in Abu Dhabi Taqa
Taqa executives and ADX officials at the listing of Taqa's dual-tranche bonds in Abu Dhabi

Abu Dhabi National Energy Company (Taqa) has listed its dual-tranche $1.5 billion bonds on the Abu Dhabi Securities Exchange (ADX).

The order book was nearly 10 times oversubscribed, with regional and international investors placing total orders of over $15 billion, the energy major said in a statement.

The five-year $500 million notes, maturing in 2029, were issued as conventional bonds with a 4.375 percent coupon, while the 10-year $1 billion “green” tranche, maturing in 2033, was priced with a 4.696 percent coupon. The coupon payments will be made on a semi-annual basis. 

Taqa will use its first green issuance to finance, refinance and invest in eligible green projects. 

Abdulla Salem Alnuaimi, CEO of Abu Dhabi Securities Exchange, said the listing shows the increasing prevalence of bonds, with numerous ADX-listed companies issuing green bonds. 

Jasim Husain Thabet, CEO and managing director of Taqa, added that the company sees green finance and decarbonisation projects as key growth opportunities for its business driven by local and international investors’ growing demand for credible green investments. 

The dual-tranche senior unsecured notes are also listed on the London Stock Exchange. 

Taqa’s new bonds take the overall debt instruments listed on ADX to 44. 

Last month a total of AED190 billion ($51 billion) was allocated by six UAE banks for the financing of renewable energy, waste-to-energy and green technology projects in the years leading up to 2022.

The increased growth in green funding by UBF members aligns with the guidelines of the central bank’s sustainable finance working group and sector-wide sustainability objectives, which support the initiatives during the “Year of Sustainability” and the UAE’s hosting of Cop28.