Abu Dhabi National Energy Company (TAQA) has raised $1.75 billion from a two-part US dollar bond sale, including $1.1 billion of five-year green notes.
The five-year tranche carries a coupon of 5.875% and was priced at 99.759, according to a post-stabilization notice published on Tuesday on the London Stock Exchange. The $650 million 10-year tranche carries a 6.125% coupon and was priced at 99.271.
J.P. Morgan Securities, the stabilization coordinator, said no stabilization was carried out by the banks on the deal after pricing.
TAQA began marketing the senior unsecured notes on Monday at initial price thoughts of around 130 basis points over US Treasuries for the five-year tranche and around 140 basis points for the 10-year tranche, Zawya reported.
The utility said proceeds would finance or refinance eligible green projects under its Green and Blue Finance Framework, with any remainder going to general corporate purposes.
Settlement is scheduled for October 26. The five-year notes mature on April 26, 2032, and the 10-year notes on October 26, 2036.
The bonds were expected to be rated Aa3 by Moody’s and AA by Fitch, in line with TAQA’s issuer ratings. They are being issued under TAQA’s $20 billion global medium-term note program and listed on the London Stock Exchange’s Main Market.
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 were joint bookrunners and joint lead managers. Citi, HSBC and Standard Chartered acted as joint green structurers.
TAQA sold a $750 million blue bond in July to fund water projects.
