UAE state-owned Abu Dhabi National Energy Company (Taqa) plans to issue “several USD hundred mn” of green bonds in 2023 for specific projects, Taqa CEO Jasim Husain Thabet tells Bloomberg. No details were given on which projects specifically were being tapped for investment, or the detailed timeframe of any green bond issuances.

It’s all part of Taqa’s growth plan: Taqa aims to sell bonds, acquire assets, and expand in both its core industries — power generation and desalination — and nascent sectors like renewable energy, as part of its overall growth strategy, according to Bloomberg. “Our focus is on growth,” Thabet said, adding that the company was “in discussions” over possible agreements and would follow through on any offering value to shareholders.

And follows the trend of oil revenues driving renewables activity: Gains in its oil and gas businesses have fueled Taqa’s push to expand in renewable energy projects, Bloomberg noted. Taqa saw its net income rise 35% y-o-y in 2022, spurred by soaring oil prices that averaged nearly USD 100/ barrel. This trend has also been seen in GCC sovereign wealth funds (SWFs), with high oil prices and currency stability boosting inflows — much of which is then being directed to green investment — according to a January report by data platform Global SWF.

This follows Masdar’s recently announced plans for a USD 750 mn maiden green bond issuance: UAE clean energy firm Masdar plans to raise as much as USD 750 mn in a maiden green bond issuance — likely to happen in 2H 2023. Taqa recently purchased a 43% stake in Masdar’s renewables business and 24% in Masdar’s nascent green hydrogen business, with Abu Dhabi National Oil Company (Adnoc) also acquiring shares in the company. UAE SWF Mubadala — which sold its majority stake in Masdar to Taqa and Adnoc — also remains a shareholder.

This is fueling Masdar’s massive growth plans: Masdar is “likely” to issue green bonds on an annual basis to support its ambitious growth plans, CFO Niall Hannigan told Bloomberg last month. The aim is to grow within and beyond MENA, with the company aiming at a renewable energy capacity of at least 100 GW by 2030, and a production quota of up to 1 mn tons of green hydrogen. Masdar aims to ultimately expand its renewable energy portfolio to over 200 GW by an as-yet undetermined time.

M&A will be a “major component” of Masdar’s growth strategy, Bloomberg noted Thabet saying. The clean energy firm will likely spend some USD 50 bn by 2030 to buy solar and wind assets, he added.