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According to a company statement released on Thursday, the issuance is the first of its kind by a government-related entity in the Gulf Cooperation Council (GCC). It also represents the largest blue bond issuance ever by a globally integrated utility company, and the largest of its kind in the Europe, Middle East, and Africa (EMEA) region.

The five-year bonds were issued through a private placement, with Standard Chartered Bank acting as the sole arranger. The transaction garnered strong demand from international investors.

Carrying a coupon rate of 5.125%, the bonds are listed on the International Securities Market of the London Stock Exchange. They hold an 'Aa3' credit rating from Moody's and an 'AA' rating from Fitch, aligning with TAQA's corporate credit rating.

The transaction marks the first blue bond issuance under TAQA’s Green and Blue Finance Framework. The framework was updated earlier this year to incorporate blue finance instruments alongside additional categories for green electricity transmission networks and climate change adaptation efforts.

Moody’s provided a Second Party Opinion (SPO) on TAQA's Green and Blue Finance Framework, awarding it a Sustainability Quality Score of 'Very Good' (SQS2).

TAQA will allocate the net proceeds from the bond issuance to finance or refinance eligible blue projects that align with the framework. To date, TAQA has issued a total of $2.6 billion in green and blue bonds following the launch of its initial Green Finance Framework in 2023.

Since the launch of its "Vision 2030" in 2021, aimed at achieving sustainable and profitable growth, the company has invested approximately $10 billion up to the end of 2025 in energy transition projects.

Tackling Water Scarcity

Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of TAQA, stated: "Water scarcity is one of the most prominent challenges of our time; however, it remains underfunded relative to its critical importance."

He added: "As a vertically integrated utility in the water resources sector, TAQA invests across the entire water value chain, with operations spanning one of the most water-scarce regions in the world."

Thabet explained that the company’s investments encompass water desalination, transmission, and distribution, as well as wastewater treatment and reuse. These efforts play a crucial role in alleviating the mounting demand pressures on water systems.

Investments to Enhance Water Security

Commenting on the market response, Thabet noted: "The significant investor appetite for this issuance reflects strong confidence in TAQA’s long-term strategy, the robustness of our financial position, and the vital importance of the infrastructure projects we manage and develop."

He emphasized that as demand continues to grow, the company remains focused on developing reliable and sustainable solutions that contribute to bolstering water security for decades to come.

Rooted in a strategy that places sustainability at its core, TAQA continues to invest heavily in low-carbon energy projects, sustainable water solutions, and future-proof infrastructure. This supports the broader energy transition while ensuring a secure, reliable supply of electricity and water to millions of customers.