The Abu Dhabi National Energy Company and the Emirates Water and Electricity Company announced the successful pricing of a $700 million guaranteed green bond issued by the Sweihan Photovoltaic Energy Company. (AED 2.6 billion).
According to Arabiya Net, these bonds, which are (TAQA's) first attempts in the field of green finance, aim to refinance the existing debt facilities of the Sweihan Photovoltaic Company, which is The company launched to construct, own and operate the Noor Abu Dhabi plant, the largest single-site solar power plant in the world.
The bonds were issued with a coupon rate of 3.265% and mature in July 2049, and the bonds are expected to have a credit rating of (BBB+) and (Baa1) from Standard & Poor's and Moody's respectively. It witnessed an oversubscription of 1.8 times to local, regional and international investors who submitted a total of $1.26 million in subscription applications. This is the largest green bond issuance in the region.
This transaction creates significant value for the shareholders of Sweihan Photovoltaic Company and the Emirates Water and Electricity Company, as the two purchasing companies, by extending the maturity of the debt for a period of five years, following the extension of the power purchase agreement for a period of five years. Until 2049, with the support of the Abu Dhabi government.
After Sweihan PV offered its green bond framework, the bonds were approved under International Capital Markets Association standards, ensuring that the project meets the requirements of the Green Bond Principles. Proceeds from these bonds will be used exclusively to refinance loans arranged in 2017 for the construction, operation and maintenance of the Noor Abu Dhabi plant.
