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Abu Dhabi's TAQA issues $750 million blue bond to fund water projects
The five-year bond is also the largest blue bond issued in the Europe, Middle East and Africa region and the biggest by an integrated power and water utility globally
- PUBLISHED: Thu 30 Jul 2026, 11:03 AM
Abu Dhabi National Energy Company (Taqa) has raised $750 million through a five-year blue bond, underscoring growing investor interest in financing water infrastructure and sustainability projects in one of the world’s most water-stressed regions.
The bond, issued through a private placement and arranged by Standard Chartered Bank, will be used to finance or refinance eligible water and wastewater management projects under Taqa’s Green and Blue Finance Framework. The notes carry a 5.125% coupon, are rated Aa3 by Moody’s and AA by Fitch, and are listed on the London Stock Exchange’s International Securities Market.
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The issuance comes as utilities and governments increasingly look to capital markets to fund water security and climate adaptation projects amid rising pressure on resources and infrastructure investment needs.
According to Taqa, the transaction is its first blue bond and follows an update to its sustainability financing framework earlier this year to include blue financing instruments and additional categories related to green grids and climate adaptation.
“Water scarcity is one of the defining challenges of our time, and it remains underfunded relative to its importance,” said Jasim Husain Thabet, Group Chief Executive Officer and Managing Director of Taqa. “As a vertically integrated power and water utility operating in one of the world’s most water-stressed regions, Taqa is investing across the water value chain.”
He said the company is investing in desalination, water transmission and distribution, wastewater treatment and reuse to help address growing pressures on water systems.
The utility said it has issued a total of $2.6 billion in green and blue-labelled bonds since launching its Green Finance Framework in 2023. It also said it invested close to $10 billion in energy-transition projects through the end of 2025 under its 2030 Vision for Sustainable and Profitable Growth.
Thabet added that the bond issuance is aligned with Abu Dhabi’s Integrated Water Sector Strategy and Climate Change Adaptation Plan.
“The strong investor demand for the transaction reflects confidence in Taqa’s long-term strategy, our financial strength and the essential nature of the infrastructure we develop and operate,” he said. “As demand continues to increase, we remain focused on developing reliable and sustainable solutions that will support water security for decades to come.”
The proceeds from the bond will be directed towards projects that meet eligibility criteria under the framework, which received a Sustainability Quality Score of SQS2 (Very Good) from Moody’s through a second-party opinion process.
