TAQA prices $1.75bn dual-tranche bond offering, includes green bond

Image: TAQA

TAQA Group has successfully priced a $1.75bn dual-tranche bond offering, the company announced on Friday.

The offering includes two tranches: $850m in 12-year green bonds with a coupon rate of 4.75 per cent, maturing on March 9, 2037; and $900m in seven-year conventional bonds, maturing on October 9, 2031, with a coupon rate of 4.375 per cent.

Both bonds are senior unsecured notes and will be listed on the London Stock Exchange. The transaction is expected to settle on October 9, following the signing of transaction documents on October 7.

The green bond issuance marks TAQA’s second under its Green Finance Framework, with net proceeds allocated to finance, refinance, and invest in eligible green projects.

The company has now secured a total of $1.85bn in green financing since 2023, supporting its ongoing decarbonisation efforts and expansion of its low-carbon energy portfolio.

The 12-year green bonds are expected to be rated Aa3 by Moody’s and AA by Fitch, in line with TAQA’s corporate credit ratings.

Proceeds from the seven-year conventional bonds will be used for general corporate purposes, including further investments in core business areas.

The offering was heavily oversubscribed, reflecting strong demand from both domestic and international investors.

The bonds were arranged by a syndicate of joint lead managers and book-runners, including Bank of China, Barclays, Citigroup, First Abu Dhabi Bank, J.P. Morgan, Mizuho, MUFG Securities, and Natixis.

The bond offering aligns with TAQA’s ESG and decarbonisation agenda

TAQA Group CEO, Jasim Husain Thabet, said, “This issuance underscores our continued ability to secure competitive financing while advancing our ESG and decarbonisation agenda. The green bond reflects growing investor interest in sustainable, low-carbon projects that align with our long-term growth targets.”

Stephen Ridlington, TAQA’s CFO, noted the successful completion of the dual-tranche bond offering, which secured favourable terms for the company. “The high demand and competitive funding terms demonstrate investor confidence in our financial strength. This transaction will help support future growth initiatives, further enhancing our investment-grade credit profile.”

The bond offering is part of TAQA’s broader strategy to finance sustainable energy projects.

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