The Abu Dhabi-based Dhafrah PV2 Energy Company priced its USD 870.75m 27.5-year green bond, with a 17-year weighted average life, at a tight spread of 100 basis points over US Treasuries, tightening from initial price guidance of around T+130 bps.
The bond carries a coupon of 5.794%, matching the yield, and was re-offered at par.
The issuer behind Abu Dhabi’s Al Dhafrah PV2 solar photovoltaic plant attracted strong demand, with the order book reaching USD 2.1bn, excluding joint lead manager interest, for the Regulation S benchmark-sized amortising Eurobond.
Dhafrah PV2 Energy, which holds ratings of A3 from Moody’s and A from S&P with stable outlooks, appointed BNP Paribas and HSBC as joint global coordinators, alongside Crédit Agricole CIB, MUFG, Standard Chartered Bank and SMBC as joint lead managers and bookrunners.
The bond is expected to be rated A3 by Moody’s and A by S&P.
Dhafrah PV2 Energy’s shareholders include Abu Dhabi National Energy Company (TAQA), Abu Dhabi Future Energy Company (Masdar), France’s EDF Renewables and China-based Jinko Power (HK) Company Limited.
Funds raised from the green bond will be allocated to finance or refinance costs associated with the Al Dhafrah PV2 project, in line with the company’s Green Bond Framework.
