Abu Dhabi National Energy Company (TAQA) raised $1.5 billion through a dual-tranche bond issue that will help to repay outstanding debt and fund its low-carbon growth plans, the company announced on Sunday.
Abu Dhabi's energy giant said the placement comprised seven-year and 30-year dual-tranche senior unsecured notes, in a stock exchange filing on Sunday.
The seven-year notes, sized at $750 million and maturing in April 2028, were issued at a coupon rate of 2%. The 30-year notes, also sized at $750 million and maturing in April 2051, were issued at a coupon rate of 3.4 %, it said.
The order book was four times oversubscribed with strong demand from Asian investors, setting the stage for further orders from the Middle East, Africa, Europe and the US.
This is the first international bond offering by TAQA since completing its transaction with Abu Dhabi Power Corporation to make one of the largest utility companies in Europe, the Middle East and Africa.
The company is offering to buy back all of its $1.5 billion outstanding corporate bonds expiring in 2021 and up to $250 million of debt instruments expiring in January 2023.
In March, TAQA announced a 2030 strategy that involves investing $10.8 billion in infrastructure development as it looks to add about 27 gigawatts of power capacity and expand its renewables portfolio.
Furthermore, being one of the largest listed integrated utility companies in Europe, the Middle East and Africa, TAQA plans to expand its power-generation capacity in the UAE from 18 gigawatts to 30 gigawatts and boost its global generating capacity by 15 gigawatts.
By Busranur Begcecanli