Abu Dhabi National Energy Company (Taqa) has priced a $1.75bn dual-tranche bond offering comprising green and conventional notes.

The issue includes $1.1bn of five-year green notes maturing on 26 April 2032 with a coupon of 5.875% and $650m of 10-year conventional notes that matured on 26 October 2036 with a coupon of 6.125%. 

The orderbook was more than three times oversubscribed, with demand from domestic, regional and international investors, according to Taqa. The company said the deal was the first public benchmark from an Abu Dhabi government-related entity (GRE) since March this year.

Proceeds from the green tranche will finance or refinance eligible renewable energy generation and green grid projects under Taqa's Green and Blue Finance Framework, which counts network infrastructure as a permitted use of proceeds. The conventional tranche will fund general corporate purposes.

The framework reflects the Climate Finance Principles for Green Grids, which were developed by the Green Grids Initiative and endorsed by the Cop30 presidency. The principles aim to broaden the pool of finance available to grids. Taqa is a co-chair of the Utilities for Net Zero Alliance.

Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Industrial and Commercial Bank of China, JP Morgan, Mashreq and Standard Chartered were joint bookrunners and joint lead managers. Citi, HSBC and Standard Chartered were joint green structurers.

The notes are expected to be rated Aa3 by Moody's and AA by Fitch, in line with Taqa's corporate credit ratings, and will be listed on the London Stock Exchange.

The deal follows Taqa's $750m blue bond in July. The company said that was the largest blue bond issued by an integrated power and water utility globally and the largest ever issued in Europe, the Middle East and Africa.

Once the latest notes settle, Taqa will have issued $3.7bn of green and blue labelled bonds since 2023, including $1.85bn this year.

Taqa said it invested close to $10bn in energy transition projects between 2021 and 2025 under its 2030 Vision for Sustainable and Profitable Growth.