Landmark transaction becomes largest Blue Bond issued by an integrated power and water utility globally
Abu Dhabi: Abu Dhabi National Energy Company PJSC (TAQA) has successfully issued a US$750 million Blue Bond to finance sustainable water and wastewater management projects.
According to TAQA, the transaction is the largest Blue Bond issued by an integrated power and water utility globally and the largest Blue Bond ever issued in the Europe, Middle East and Africa (EMEA) region.
The five-year bond was issued through a private placement, with Standard Chartered Bank acting as sole placement agent. The issuance attracted strong demand from international investors.
The notes carry a 5.125% coupon rate, 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 ratings.
The transaction marks the first Blue Bond issued under TAQA’s updated Green and Blue Finance Framework, which was expanded earlier this year to include blue financing instruments as well as additional categories related to green grids and climate change adaptation.
Moody’s provided a Second Party Opinion on the framework and assigned it a Sustainability Quality Score (SQS2) of “Very Good”. The net proceeds will be used to finance or refinance eligible Blue projects in accordance with the framework.
With the latest issuance, TAQA has raised a total of US$2.6 billion through Green and Blue-labelled bonds since launching its Green Finance Framework in 2023.
Since unveiling its 2030 Vision for Sustainable and Profitable Growth in 2021, TAQA has invested nearly US$10 billion in energy transition projects across the utility sector through the end of 2025.
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.”
He said these investments include desalination, water transmission and distribution, wastewater treatment and reuse projects aimed at addressing growing pressures on water systems.
Thabet added that the issuance aligns 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 said.
TAQA said sustainability remains a core part of its corporate strategy, with continued investments in low-carbon power generation, sustainable water solutions and resilient infrastructure to support the energy transition while delivering reliable power and water services.
