Taqa (Abu Dhabi National Energy Company) has announced the profitable placing of $1.5 billion in 7-year and 30-year dual-tranche senior unsecured notes (the "Notes").

The $750 million 7-year bonds, which mature in April 2028, were sold at a coupon rate of 2.0 %. The 30-year bonds, which are also worth $750 million and will mature in April 2051, were released at a coupon rate of 3.4 %. Taqa's first Formosa issuance is a 30-year tranche that is dual-listed in Taipei and London to capitalize on Taiwanese interest.

The order book remained 4 times oversubscribed, with high interest from Asian buyers paving the way for additional orders from the Middle East, Europe, and the United States. The $6.1 billion final order book enabled the group to obtain considerably lower interest rates than on current TAQA bonds. The Notes are ranked Aa3 by Moody's and AA- by Fitch, under the company's corporate credit scores.

The net proceeds from the selling of the Notes will also be used for business purposes, such as debt reduction. A syndicate of joint lead managers and bookrunners, including Bank of China, Citi, First Abu Dhabi Bank, HSBC, Mashreq, Mizuho Securities, and MUFG, negotiated and offered the issuance.

In response to the issuing of bonds, TAQA promised to buy back all $1.5 billion in existing corporate bonds reaching maturity in 2021 and up to $250 million in bonds maturing in January 2023 for cash, subject to customary conditions. Investors submitted a total of $712 million in 2021 Notes, even though the 2023 Notes are already being bought back from now to the date of this publication.