[TAQA] 

Abu Dhabi National Energy Company PJSC (TAQAUH) exp Aa3/AA (Moody's/Fitch - s/s) US$ 1.75bn 144A/Reg S 2-pt sr unsec notes (L5y FXD due 04/26/32 and 10y FXD due 10/26/36). Denoms: 200,000 x 1,000. UoP: Financing Eligible Green Projects as described in TAQA's Green and Blue Finance Framework for L5y and General Corporate Purposes for 10y. Marketing: URL:https://dealroadshow.finsight.com Entry Code: TAQA2026 Direct Link:https://dealroadshow.finsight.com/e/TAQA2026. Governing Law: English Law. Listing: London Stock Exchange, Main Market. Pricing 10/19. Settle 10/26 (T+5).

VIA:
- Citi/HSBC/Standard Chartered Bank joint green structurers.
- Bookrunners / Joint Lead Managers: Abu Dhabi Commercial Bank/Citi (B&D on L5y)/Emirates NBD Capital/First Abu Dhabi Bank/HSBC/Industrial and Commercial Bank of China/JPM (B&D on 10y)/Mashreq/Standard Chartered Bank

Announced overnight as benchmark, final size came in at $1.75bn with price progression as follows:

L5yr – IPT T+130a; GDNC T+98#; PXD $1.10bn 5.875% $99.759 Yld 5.927% T+98bp
10yr – IPT T+140a; GDNC T+108#; PXD $650m 6.125% $99.271 Yld 6.224% T+108bp

As for r/v, outstanding TAQA was quoted as follows
- TAQAUH 4.375% due 10/09/31 T+88bp (G88; $94.125) - $900m pxd OCT 2024 +85
- TAQAUH 4.696% due 04/24/33 T+75bp (G88; $93.60) - $1bn pxd APR 2023
- TAQAUH 6.500% due 10/27/36 T+89bp (G88; $103.51) - $1.5bn pxd OCT 2006
- TAQAUH 4.750% due 03/09/37 T+89bp (G87; $90.21) - $850m pxd OCT 2024 +105

The TAQA curve is clearly super flat – pretty much G88 across.

* 5yr f/v T+88bp – at the T+98bp pricing level, 5YR CONCESSION IS 10BP.

* 10yr f/v T+88bp – at the T+108bp pricing level, 10YR CONCESSION IS 20BP.

The proximity to the current conflict no doubt led to the larger NICs.

When TAQA priced the 4.375s and 4.75s on Oct 2, 2024, location was already a factor.

Iran on 10/01/24 fired approx. 200 missiles into Israel in retaliation for Israel’s campaign of strikes against Hezbollah – including the killing of its leader. Netanyahu vowed to respond, calling the attack a “major mistake”. Iran warned Israel of a subsequent “crushing response” if Israel retaliates.  (Sound familiar?)

The 4.375s of 10/31 printed with a 6bp NIC.  The 4.750s of 3/9/37 came in with a 5bp NIC.

When TAQAUH hit the market in 2023 it came in with a neg 10bp NIC on the 4.375% due 1/24/29 (book was 11.30x covered), and a neg 5bp NIC on the 4.696% due 4/24/33 (book 7.25x covered)

FINAL BOOKS TODAY CAME IN AT:

$1.100bn L5YR Green - $3.30bn (3.00x)
$650m 10YR - $2.450bn (3.77x)
We didn’t catch a peak on either tranche, but some heard there wasn’t much attrition.