The UAE’s state-owned Abu Dhabi National Energy Company (Taqa) has raised an aggregate USD 1.5 bn in its dual-tranche green bond issuance, according to a disclosure to the Abu Dhabi Securities Exchange (pdf). This is the first green bond issuance under guidelines from Taqa’s new Green Finance Framework issued earlier this month, and the company’s second green bond issuance after it raised USD 701 mn in green senior secured bonds last January with the Emirates Water and Electricity Company.

The details: The USD 1 bn 10-year tranche — issued at a coupon rate of 4.696% — matures on 24 April 2033. The proceeds from these notes will be used to finance, refinance, and invest in green projects outlined within Taqa’s green finance framework, the statement notes, including renewable energy, energy efficiency, sustainable water and wastewater management, clean transportation, and terrestrial and aquatic biodiversity. Taqa also sold USD 500 mn in five-year notes — issued as conventional bonds at a coupon rate of 4.375% — with a maturity date of 24 January 2029. Proceeds will be allocated to general corporate purposes, the statement notes.

There was strong demand: The sale was almost 10x oversubscribed at a final order book nearing USD 15 bn “with a very strong demand from domestic, regional and international investors,” the statement reads.

Regional green bonds and sukuk have been doing well: The Saudi Electricity Company’s green sukuk issuance earlier this month was nearly 7.6x oversubscribed, drawing some USD 9.2 bn in demands and attracting regional and international interest.

Advisors: A syndicate of joint lead managers comprising BNP Paribas, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, IMI-Intesa Sanpaolo, Scotiabank, SMBC Nikko and Standard Chartered helped arrange and offer the issuance.