ADX lists $1.5bn of dual-tranche TAQA bonds on its main market

By Arya M Nair, Official Reporter
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TAQA bond listing on ADX
Rep.Image (Courtesy: WAM)

Abu Dhabi Securities Exchange (ADX) has made a secondary listing of Abu Dhabi National Energy Company (TAQA) dual-tranche $1.5 billion bonds on its main market.

The 5-year $500 million notes, maturing in 2029, were issued as conventional bonds with a 4.375 percent coupon, while the 10-year $1 billion tranche, maturing in 2033, was priced with a 4.696 percent coupon, with coupon payments being made to bondholders on a semi-annual basis.

Moreover, the 10-year notes were structured as green notes, TAQA’s first green issuance, with the proceeds being used to finance, refinance and invest in eligible green projects in line with TAQA’s Green Finance Framework. The dual-tranche senior unsecured notes, which form part of TAQA’s Global Medium Term Note Program, will now be listed on both ADX and the London Stock Exchange (LSE). This listing brings the overall debt instruments listed on ADX to 44.

Abdulla Salem Al Nuaimi_TAQA lists dual-tranche bonds on ADX
Abdulla Salem Al Nuaimi

“TAQA’s sizeable secondary bond listing on ADX reflects our ongoing and successful efforts to increase the number of listings across our growing debt market. In line with these efforts, we continue to demonstrate our ability to diversify and broaden the range of securities on offer across ADX markets to benefit of our market participants. This listing also demonstrates the increasing prevalence of bonds that have witnessed a sharp rise with numerous ADX-listed companies issuing green bonds. Aligned to green finance frameworks, these issuances support the continued development of ESG and sustainability across our market, aligned with the UAE’s efforts and net zero ambitions.”

Mr. Jasim Husain Thabet, TAQA’s Group CEO and Managing Director commented that “TAQA is pleased to announce the secondary listing of our dual-tranche bonds onto the Abu Dhabi debt market in partnership with ADX, including our first TAQA-issued green bond. As a low-carbon power and water champion, we see green finance and decarbonization projects as key growth opportunities for our business driven by local and international investors’ growing demand for credible green investments. Furthermore, we are positioning ourselves as one of the region’s leaders when it comes to green financing with our Green Finance Public Framework, our ESG Strategy and 2030 emissions reduction targets. TAQA is a company that represents the energy transition in action with ambitious decarbonization targets and a credible strategy to get us there.”

At the time of issuance, the order book was nearly 10 times oversubscribed, with regional and international investors placing total orders of over $15 billion. In line with TAQA’s corporate credit rating, the notes are rated Aa3 by Moody’s and AA- by Fitch, reflecting TAQA’s robust financial position and Abu Dhabi’s strong macroeconomic fundamentals and outlook.

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