- Group’s dual-tranche issuance of senior unsecured notes showcases its strategic foresight in capital markets and its unwavering commitment to sustainable development.
- First tranche consists of $850mn green bond with a maturity of 12 years while $900mn second tranche with a seven-year maturity.
ABU DHABI: Abu Dhabi-listed Taqa Group has announced the pricing of dual-tranche senior unsecured notes amounting to $1.75 billion, with the intention of listing them on the London Stock Exchange (LSE).
The issuance reflects the company’s proactive approach to raise capital while bolstering its commitment to sustainability and responsible investment practices.
The first tranche consists of $850 million green bond with a maturity of 12 years, set to mature on 9 March 2037 and boasting a coupon rate of 4.75 per cent. This marks Taqa’s second green bond issuance and highlights the company’s dedication to financing, refinancing, and investing in environmentally sustainable projects.
Eyes favourable ratings
The net proceeds from this bond will be allocated specifically to initiatives that support green energy and infrastructure, underscoring the increasing investor interest in credible environmental, social, and governance opportunities.
The second tranche includes a conventional bond of $900 million, with a seven-year maturity, maturing on October 9, 2031 at a coupon rate of 4.375 per cent.
The proceeds from this bond will be utilised for general corporate purposes, demonstrating Taqa’s strategy to maintain flexible funding amidst evolving market conditions. The transaction is expected to have its documents signed on October 7, 2024, with settlement following shortly thereafter.
Both tranches are integrated into Taqa’s global medium-term note programme and are anticipated to receive favourable ratings of Aa3 from Moody’s and AA from Fitch. The rating is indicative of the company’s robust financial health and the credibility of its projects.
Jasim Husain Thabet, Taqa’s Group CEO, said the significance of this green bond offering, noting that it exemplifies the firm’s ability to secure competitive financing while furthering its environmental goals. He remarked that the issuance not only aligns with Taqa’s growth ambitions but also addresses the rising demand from investors for genuine green investment opportunities.
