Taqa raises $1.5bn from dual tranche bond to fund expansion

Taqa raises $1.5bn from dual tranche bond to fund expansion

Abu Dhabi National Energy Company, better known as Taqa, has raised an aggregate $1.5 billion through dual tranche bond issuances, including its first green bond as it continues to invest in expansion and diversify its sources of funding.

Taqa, among the largest integrated utilities in the Europe, Middle East and Africa region, raised $1 billion from its debut green bond, net proceeds of which will be used for financing, refinance and investment in green projects, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The 10-year senior unsecured bond maturing in April 2033, carries a coupon of 4.696 per cent.

The five-year tranche of $500 million, maturing in January 2029, was issued as conventional bonds at a coupon rate of 4.375 per cent. Taqa plans to use the proceeds of the deal for general corporate purposes, it said.

The aggregate order book of both convention and green bond issuances reached almost $15 billion, as the deal was about 10 times oversubscribed.