Taqa issues USD 750 mn blue bond

Abu Dhabi National Energy Company (Taqa) issued a USD 750 mn, five-year blue bond, according to a press release. The private placement carries a fixed coupon of 5.125% and is listed on the London Stock Exchange’s International Securities Market. Taqa said the proceeds would go toward financing sustainable water and wastewater management projects.

The first of its kind: The offering marks the first blue bond issued by a government-related entity in the GCC and brings Taqa’s total issuance of green and blue bonds to USD 2.6 bn.

REMEMBER- The Gulf’s first public blue bond was issued by Emirates NBD earlier this year, raising a total of USD 1 bn split across a blue bond and a green bond tranche, with the orderbook more than twice oversubscribed. Meanwhile, other private placements (like FAB’s blue bond) have taken place in the past, and these are often bought by development banks and ESG funds, which could involve some mandate-buying strategies.

IN CONTEXT- The issuance comes after Abu Dhabi Power Corporation (ADPower), which is owned by Abu Dhabi sovereign wealth fund L’imad, moved to take full control of Taqa last month. The move is set to give L’imad full ownership of the utility giant.

Advisors: Standard Chartered Bank acted as the sole placement agent for the transaction.