Abu Dhabi’s TAQA to sell dual-tranche bonds Monday: Document

Abu Dhabi National Energy Company, known as TAQA, plans to price a two-tranche bond on Monday, a bank document showed, and has released initial price guidance for the long five-year and 10-year green bond.

Initial guidance on the long five-year tranche was around 120 basis points over Treasuries and for the 10-year portion at around 145 basis points over Treasuries. Both tranches are expected to be benchmark-sized, or at least $500 million.

TAQA, an integrated utility company which is 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 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.