Taqa raises $700.8m through first green bond
Abu Dhabi National Energy Company (Taqa), with Emirates Water and Electricity Company (Ewec), raised $700.8m through its first green bond as part of its strategy to boost sustainable financing for project and asset development
Abu Dhabi National Energy Company (Taqa), with Emirates Water and Electricity Company (Ewec), raised $700.8m through its first green bond as part of its strategy to boost sustainable financing for project and asset development.
Taqa will use the proceeds of its maiden green bond to refinance the existing debt of the Sweihan photovoltaic (PV) solar project.
Maturing in 2049, the bonds offer a 3.625 per cent coupon and are expected to receive BBB+/Baa1 ratings from S&P and Moody’s, respectively. The deal was 1.8 times oversubscribed with local, regional and international investors placing total orders of $1.26bn, Taqa revealed on 17 January.
“Taqa continues to deliver benchmark renewable energy projects with our investments underpinned by our strong balance sheet and our commitment to delivering shareholder value,” said Jasim Husain Thabet, group CEO, Taqa.
“This bond attracted interest from international and environmental, social, and governance (ESG)-focused investors, further solidifying the confidence in Taqa based on our strong track record.”
"Over the next 10 years, Taqa will continue to deliver on its objectives for sustainable growth and returns, with commitment to environment, social and governance standards as it seeks to become the “recognised low-carbon power and water champion of Abu Dhabi”, added Thabet.
A syndicate of joint lead managers and bookrunners including Citi, HSBC, MUFG, BNP Paribas, First Abu Dhabi Bank and SMBC Nikko arranged the transaction. White & Case were legal advisers, while Alderbrook Finance was financial adviser for SPPC.
Noor Abu Dhabi is the world’s largest single-site solar photovoltaic plant, which recently completed three years of commercial operations. The 1.2GW Sweihan solar project supplies more than 90,000 households with clean solar power in Abu Dhabi.
The project is 60 per cent owned by Taqa, with the remaining 40 per cent held by Japan’s Marubeni Corporation and China’s Jinko Solar.
In 2021, Taqa revealed its 2030 strategy, which includes investing $10.9bn as part of its goal to develop an additional 27GW of renewable energy capacity. The company plans to expand its generation capacity in the UAE from 18GW to 30GW over this period, while increasing its international capacity by 15GW.
In addition to Noor Abu Dhabi, Taqa also has Al Dhafra Solar PV Plant under construction, which will overtake Noor Abu Dhabi to become the world’s largest single site solar PV plant, once completed.
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