State-owned Abu Dhabi National Energy Company (TAQA) raised $1.5bn via a two-tranche bond issuance priced on Tuesday. It raised:

  • $750mn 7Y bonds at a yield of 2.03%, 80bp over Treasuries and 30bp inside initial guidance of T+110bp area
  • $750mn 30Y formosa at a yield of 3.40%, 113.4bp over Treasuries and 35bp inside initial guidance of 3.75% area

The bonds are expected to be rated Aa3/AA- in line with the issuer rating. The energy company’s new bonds received orders of over $6.5bn, 4.3x issue size with majority of the orders flowing in for the 7Y. Citi and HSBC were global coordinators and Bank of China, First Abu Dhabi Bank, Mashreq, Mizuho and MUFG were also on the deal. The 7Y bonds were priced in line with its existing curve, given that its older 3.475% bonds due 2026 and 4.875% bonds due 2030 are currently yielding 1.58% and 2.46% respectively. TAQA has also launched a tender offer to buyback any or all of its older 3.625% 2021s at $1,006.4 and 5.875% 2021s at $1,038 per $1,000 in principal, in line with the current market price. It is also looking to buyback a maximum of $250mn of its 3.625% 2023s.

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