Abu Dhabi’s Taqa to issue dual-tranche bond

Five-year tranche expected to be $500 million in size

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Proceeds from Taqa's five-year tranche will be used for general corporate purposes. - KT file

By Reuters

Published: Mon 17 Apr 2023, 4:31 PM

Abu Dhabi National Energy Company (Taqa), plans to price a $1.5 billion two-tranche bond on Monday, amid strong demand, a bank document showed.

Guidance for the long five-year tranche, expected to be $500 million in size, was tightened to 90 basis points over Treasuries from earlier indications of 120 bps as order books reached over $5.5 billion.

A 10-year green bond issue is expected to be $1 billion in size with price guidance at 120 basis points over Treasuries, 25 bps tighter than initially indicated, with over $6.1 billion in orders.

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Taqa, an integrated utility company majority-owned by the Abu Dhabi government, mandated banks last week for the senior, unsecured bond issue following an earlier launch of its green finance framework.

Proceeds from the five-year tranche will be used for general corporate purposes while the 10-year green bond will be used to finance projects as set out in the framework.

BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, IMI-Intesa Sanpaolo, Scotiabank, SMBC Nikko and Standard Chartered Bank are mandated bookrunners and lead managers.

First Abu Dhabi Bank, HSBC, and Standard Chartered Bank are joint green structuring advisers.

Reuters

Published: Mon 17 Apr 2023, 4:31 PM

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