TAQA Group has successfully completed the pricing of a $1.75 billion dual-tranche bond offering, the company announced on Friday. This issuance consists of two parts: $850 million in 12-year green bonds, which carry a coupon rate of 4.75 percent and will mature on March 9, 2037; and $900 million in seven-year conventional bonds, maturing on October 9, 2031, with a coupon rate of 4.375 percent.
Both types of bonds are classified as senior unsecured notes and are set to be listed on the London Stock Exchange. The transaction is anticipated to settle on October 9, following the signing of the transaction documents on October 7.
This green bond issuance marks TAQA’s second under its Green Finance Framework, with net proceeds earmarked for financing, refinancing, and investing in eligible green projects. With this latest offering, the company has now amassed a total of $1.85 billion in green financing since 2023, bolstering its ongoing decarbonisation initiatives and the growth of its low-carbon energy portfolio.
The 12-year green bonds are expected to achieve a credit rating of Aa3 from Moody’s and AA from Fitch, consistent with TAQA’s corporate credit ratings.
Meanwhile, proceeds from the seven-year conventional bonds will be allocated to general corporate purposes, including further investments in core business sectors.
The bond offering was met with overwhelming demand, reflecting robust interest from both domestic and international investors. A syndicate of joint lead managers and book-runners facilitated the offering, comprising Bank of China, Barclays, Citigroup, First Abu Dhabi Bank, J.P. Morgan, Mizuho, MUFG Securities, and Natixis.
This bond issuance aligns with TAQA’s environmental, social, and governance (ESG) goals and decarbonisation strategy.
TAQA Group CEO, Jasim Husain Thabet, remarked, “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.”
TAQA’s CFO, Stephen Ridlington, also expressed satisfaction with the successful completion of the dual-tranche bond offering, which has resulted in favorable 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.”
This bond offering is a key component of TAQA’s broader strategy to finance sustainable energy projects.
