Abu Dhabi’s Taqa and EWEC price first green bond linked to solar PV plant

Abu Dhabi National Energy Company (Taqa) and Emirates Water and Electricity Company (EWEC) have successfully priced green senior secured bonds for an aggregate principal amount of $700.8m by the Sweihan PV Power Company (SPPC).

Issued at a 3.625 per cent coupon rate maturing on January 31, 2049, the bonds are expected to receive BBB+/Baa1 ratings from S&P and Moody’s, respectively and were 1.8 times oversubscribed with local, regional and international investors placing total orders of $1.26bn.

The bonds, one of Taqa’s first forays into green financing, will refinance existing debt facilities of SPPC, the project company incorporated to build, own and operate Noor Abu Dhabi, the world’s largest single-site solar project currently in operation. It has 1.2 GW of direct current power generation capacity and supplies over 90,000 households with clean solar power in Abu Dhabi while reducing CO2 emissions by one million metric tons annually.

Jasim Husain Thabet, Taqa group chief executive officer and managing director, said: “This bond attracted interest from international and ESG-focused investors, further solidifying the confidence in TAQA based on our strong track record. Over the next 10 years, we will continue to deliver on our objectives for sustainable growth and returns with a steadfast commitment to ESG.”

Read: Abu Dhabi’s ADNOC, Taqa announce $3.6bn project to decarbonise offshore operations

Othman Al Ali, chief executive officer of EWEC, said: “Noor Abu Dhabi is the foundation of solar power development in Abu Dhabi and the first of many world leading projects in the UAE that are driving change in the energy sector and minimising its carbon footprint. Accessing investor markets through the issuance of green bonds is a key step in financing this critical change and supporting the UAE’s sustainability goals.”

EWEC has made strategic investments in #SolarPV, overseeing the development of the current world’s largest single-site solar power plant, Noor Abu Dhabi, and the future world’s largest single-site solar power plant at Al Dhafra.#renewablenergy #sustainability #UAENetZero2050 https://t.co/kjzYtm8CoQ

— EWEC (@EWEC_AE) January 3, 2022

This transaction generates significant value for the shareholders of SPPC and EWEC as procurer through an extension to the debt maturity by five years on the back of a five-year power purchase agreement extension to 2049, which was secured with the support of the Abu Dhabi government.