Energy, Oil & Gas

TAQA prices $1.75bn bond offering amid strong investor demand

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Abu Dhabi National Energy Company (TAQA) has priced a $1.75 billion dual-tranche bond offering, comprising green notes and conventional notes, with the orderbook more than three times oversubscribed.

Settlement is expected on October 26, 2026.

The offering includes $1.1 billion in five-year green notes maturing on April 26, 2032, with a coupon of 5.875%, and $650 million in 10-year conventional notes maturing on October 26, 2036, carrying a coupon of 6.125%.

TAQA said strong demand from domestic, regional and international investors reflected confidence in its credit quality and long-term strategy.

The transaction marks the first public benchmark issuance by an Abu Dhabi government-related entity (GRE) since March 2026, highlighting continued investor appetite for high-quality Abu Dhabi credit.

Proceeds from the green tranche will finance or refinance eligible renewable energy generation and green grid projects under TAQA’s Green and Blue Finance Framework, which permits investment in network infrastructure.

The framework aligns with the Climate Finance Principles for Green Grids, developed by the Green Grids Initiative and endorsed by the COP30 Presidency.

As co-chair of the Utilities for Net Zero Alliance (UNEZA), TAQA supports the principles, which aim to expand financing opportunities for electricity grids.

Proceeds from the conventional notes will be allocated to general corporate purposes. Together, the two tranches support TAQA’s 2030 Vision for Sustainable and Profitable Growth, following investments of nearly $10 billion in energy transition projects between 2021 and 2025.

The transaction follows TAQA’s $750 million Blue Bond issued in July 2026, described as the largest blue bond issued by an integrated power and water utility globally and the largest ever in the Europe, Middle East and Africa region.

Following settlement, TAQA’s total green and blue-labelled bond issuance since 2023 will reach $3.7 billion, including $1.85 billion in 2026.

The notes are expected to receive ratings of Aa3 from Moody’s and AA from Fitch, in line with TAQA’s corporate credit ratings, and will be listed on the London Stock Exchange.

The offering was arranged by nine joint bookrunners and joint lead managers, including Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, J.P. Morgan, Mashreq and Standard Chartered Bank. Citi, HSBC and Standard Chartered Bank served as joint green structurers.

Jasim Thabet, Group Chief Executive Officer and Managing Director, TAQA, said: “The quality of investor demand reflects confidence in our financial strength and our ability to deliver on our long-term strategy. It also underscores the importance of this issuance’s purpose: renewable power only creates value when networks can deliver it to the homes and businesses that need it. Our disciplined approach to capital management, and a balance sheet that remains strong, give us competitive access to funding and the flexibility to keep investing in resilient grids, renewable energy and sustainable water solutions.” -OGN/TradeArabia News Service