UAE – Mubasher: Abu Dhabi National Energy Company (TAQA) announced the placement of $1.5 billion in seven-year and 30-year dual-tranche senior unsecured notes, according to a disclosure on Sunday.

The seven-year bonds, which stand at $750 million in size and maturing in April 2028, were issued at a coupon rate of 2%.

The 30-year notes, also sized at $750 million and maturing in April 2051, hold a coupon rate of 3.4%.

The order book was four times oversubscribed, with the final order book of $6.1 billion allowing TAQA to achieve lower interest costs than on existing TAQA bonds.

The notes witnessed strong demand from Asian investors setting the stage for further orders from MENA, Europe, and the US.

TAQA said net proceeds from the sale of the bonds will be used for general corporate purposes, including the repayment of outstanding debt.

The issuance was arranged and offered through a syndicate of joint lead managers and bookrunners comprising of Bank of China, Citi, First Abu Dhabi Bank, HSBC, Mashreq, Mizuho Securities, and MUFG.

TAQA also offered to buy back, for cash, all the $1.5 billion of outstanding corporate bonds maturing in 2021 in addition to up to $250 million of the bonds maturing in January 2023, subject to customary conditions.

TAQA has set the lowest coupon achieved to date at 2%, TAQA’s Group Chief Financial Officer Steve Ridlington said.