ADX lists $15b of dual-tranche Taqa bonds on its main market

Abu Dhabi Securities Exchange (ADX) announced the secondary listing of Abu Dhabi National Energy Company PJSC (Taqa) dual-tranche $1.5 billion bonds on its main market. The 5-year $500 million notes, maturing in 2029, were issued as conventional bonds with a 4.375% coupon, while the 10-year $1 billion tranche, maturing in 2033, was priced with a 4.696% coupon - with coupon payments being made to bondholders on a semi-annual basis.Moreover, the 10-year notes were structured as green notes - TAQA’s first green issuance - with the proceeds being used to finance, refinance and invest in eligible green projects in line with TAQA’s Green Finance Framework. The dual-tranche senior unsecured notes - which form part of Taqa Global Medium Term Note Programme - will now be listed on both ADX and the London Stock Exchange (LSE).This listing brings the overall debt instruments listed on ADX to 44.

Commenting on the secondary listing,  Abdulla Salem Alnuaimi, Chief Executive Officer of Abu Dhabi Securities Exchange, said: “Taqa’s sizeable secondary bond listing on ADX reflects our ongoing and successful efforts to increase the number of listings across our growing debt market. In line with these efforts, we continue to demonstrate our ability to diversify and broaden the range of securities on offer acrossADX markets to benefit of our market participants.”

”This listing also demonstrates the increasing prevalence of bonds that have witnessed a sharp rise with numerous ADX-listed companies issuing green bonds. Aligned to green finance frameworks, these issuances support the continued development of ESG and sustainability across our market, aligned with the UAE’s efforts and net zero ambitions.”Jasim Husain Thabet, TAQA’s Group Chief Executive Officer and Managing Director commented: “Taqa is pleased to announce the secondary listing of our dual-tranche bonds onto the Abu Dhabi debt market in partnership with ADX, including our first Taqa-issued green bond.

As a low-carbon power and water champion, we see green finance and decarbonization projects as key growth opportunities for our business driven by local and international investors’ growing demand for credible green investments. Furthermore, we are positioning ourselves as one of the region’s leaders when it comes to green financing with our Green Finance Public Framework, our ESG Strategy and 2030 emissions reduction targets.

TAQA is a company that represents the energy transition in action with ambitious decarbonization targets and a credible strategy to get us there.”At the time of issuance, the order book was nearly 10 times oversubscribed, with regional and international investors placing total orders of over $15 billion. In line with TAQA’s corporate credit rating, the notes are rated Aa3 by Moody’s and AA- by Fitch, reflecting TAQA’s robust financial position and Abu Dhabi’s strong macroeconomic fundamentals and outlook.

Meanwhile, the International Air Transport Association (IATA) announced that the post-COVID recovery momentum continued in July for passenger markets.

Total traffic in July 2023 (measured in revenue passenger kilometers or RPKs) rose 26.2 percent compared to July 2022. Globally, traffic is now at 95.6 percent of pre-COVID levels.

Domestic traffic for July rose 21.5 percent versus July 2022 and was 8.3 percent above the July 2019 results. July RPKs are the highest ever recorded, strongly supported by surging demand in the China domestic market. International traffic climbed 29.6percent compared to the same month a year ago with all markets showing robust growth. International RPKs reached 88.7percent of July 2019 levels. The passenger load factor (PLF) for the industry reached 85.7percent which is the highest monthly international PLF ever recorded.

“Planes were full during July as people continue to travel in ever greater numbers. Importantly, forward ticket sales indicate that traveler confidence remains high. And there is every reason to be optimistic about the continuing recovery,” said Willie Walsh, IATA’s Director General.

Asia-Pacific airlines saw a 105.8 percent increase in July 2023 traffic compared to July 2022, continuing to lead the regions. Capacity climbed 96.2 percent and the load factor increased by 3.9 percentage points to 84.5percent.

European carriers’ July traffic rose 13.8 percen versus July 2022. Capacity increased 13.6 percent, and load factor edged up 0.1 percentage points to 87.0 percent.

Middle Eastern airlines posted a 22.6 percent increase in July traffic compared to a year ago. Capacity rose 22.1 percent and load factor climbed 0.3 percentage points to 82.6 per cent.

North American carriers had a 17.7 percent traffic rise in July 2023 versus the 2022 period. Capacity increased 17.2 percent, and load factor improved 0.3 percentage points to 90.3 percent, which was the highest among the regions for a second consecutive month.