TAQA Group successfully issues $750 million Blue Bond

Abu Dhabi National Energy Company PJSC (TAQA) on Thursday announced the successful issuance of a US$750 million Blue Bond to finance sustainable water and wastewater management projects.

This marks the largest Blue Bond issued by an integrated power and water utility globally and the largest Blue Bond ever issued in the EMEA region.

The five-year bond was issued in Private Placement format with Standard Chartered Bank as Sole Placement Agent and drew strong demand from international investors.

The notes bear a coupon rate of 5.125 percent, are listed on the London Stock Exchange’s International Securities Market, and are rated Aa3 by Moody’s and AA by Fitch, in line with TAQA’s corporate credit rating.

The transaction is the first Blue Bond issuance under TAQA’s Green and Blue Finance Framework, which was updated earlier this year to include Blue financing instruments and additional categories related to green grid and climate change adaptation.

Moody’s provided a Second Party Opinion on the Framework and assigned it a Sustainability Quality Score of SQS2 (Very Good). The net proceeds of the bond will be used to finance or refinance eligible Blue projects in line with the Framework.

TAQA has now issued a total of $2.6 billion of Green and Blue labelled bonds to date, after the launch of its Green Finance Framework in 2023.

Since the launch of its 2030 Vision for Sustainable and Profitable Growth in 2021, TAQA has invested close to $10 billion through the end of 2025 towards energy transition projects in the utility sector.

Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA, said, “Water scarcity is one of the defining challenges of our time, and it remains underfunded relative to its importance. As a vertically integrated power and water utility operating in one of the world's most water-stressed regions, TAQA is investing across the water value chain. This includes desalination, water transmission and distribution, wastewater treatment and reuse, helping address growing pressures on water systems.

He said the issuance marks an important milestone for TAQA and is aligned with Abu Dhabi’s Integrated Water Sector Strategy and Climate Change Adaptation Plan.

"The strong investor demand for the transaction reflects confidence in TAQA’s long-term strategy, our financial strength and the essential nature of the infrastructure we develop and operate. As demand continues to increase, we remain focused on developing reliable and sustainable solutions that will support water security for decades to come," he added.

With sustainability central to its Corporate Strategy, TAQA continues to invest significantly in low-carbon power, sustainable water solutions, and resilient infrastructure, supporting the energy transition while delivering secure, reliable power and water to millions of customers.

WAM