Al Dhafra Solar Green Bonds Refinancing Clears US$ 870.75 Million Milestone In Abu Dhabi

Abu Dhabi National Energy Company PJSC (TAQA) and partners have issued long-term Green Bonds worth US$870.75 million (AED3.2 billion) to refinance the Al Dhafra Solar Photovoltaic (PV) Independent Power Plant. Announced during Abu Dhabi Sustainability Week 2026, the bonds carry a 5.794 percent coupon, mature in June 2053, and are intended mainly to replace existing project debt.

The Green Bonds are expected to receive an A3 rating from Moody’s and an A rating from Standard and Poor’s. BNP Paribas and HSBC acted as Joint Global Coordinators, while Crédit Agricole CIB, MUFG, Standard Chartered Bank and SMBC worked as Joint Lead Managers and Bookrunners alongside them. Proceeds follow the ICMA Green Bond Principles 2025 and Climate Bonds Standard rules for ‘Solar Energy’.

Al Dhafra Solar PV, inaugurated in 2023 and developed near Abu Dhabi, is described as one of the world’s largest single-site solar PV plants. The facility uses almost four million bi-facial solar panels to raise output. It also employs self-powered robotic cleaners that operate without water, which reduces water use compared with conventional panel washing systems.

The plant’s operational impact includes an expected annual saving of about 2.4 million metric tonnes of CO₂ emissions. It is also stated to supply electricity to around 200,000 households. These outcomes support Abu Dhabi’s wider climate and energy goals, while highlighting the project’s role within the UAE’s broader clean power agenda and long-term decarbonisation plans.

Farid Al Awlaqi, Chief Executive Officer of TAQA’s Generation business, said, "After more than two years of full commercial operations, we are pleased that Al Dhafra Solar PV Power Plant’s bonds’ issuance has been certified as a 100 percent green asset, testament to its current operational track record and projected future performance."

Al Awlaqi said the plant is expected to prevent about 2.4 million metric tonnes of CO₂ emissions each year. The issuance, Al Awlaqi added, strengthens Abu Dhabi’s energy transition strategy. "TAQA is proud to be contributing to the transition with a target of two-thirds of our gross power capacity being generated from renewables by 2030," Al Awlaqi added.

TAQA reports that its total power generation capacity reached about 70 GW as of 30th September 2025. The company has set a 2030 goal of achieving 150 GW of generation capacity. Within that expansion, TAQA plans to raise the share of renewable sources, aligning with net-zero strategies adopted across the UAE’s energy sector.

Green Bonds deepen market access for Abu Dhabi clean power projects

Ahmed Ali Alshamsi, Chief Executive Officer of Emirates Water and Electricity Company (EWEC), noted that this transaction builds on an earlier solar financing exercise. He said the Al Dhafra Solar PV green bond is EWEC’s second solar fixed income issue in the capital markets, following the Noor Abu Dhabi green bond launched in early 2022.

Alshamsi said, "Bringing fixed income investors into the power sector in Abu Dhabi secures competitive long-term capital and enhances investor relations in Abu Dhabi and the UAE, while also allowing financial capital to be re-deployed for future solar PV projects," he stated. The comments underline how repeat issuance can support further large-scale solar developments.

Green Bonds draw global investors to Al Dhafra Solar PV

Masdar’s involvement adds to its existing green finance activity. Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, "Masdar is proud to have raised more than $2.75 billion in green bonds, and this latest successful issuance demonstrates how large-scale, bankable renewable energy projects can attract global capital while delivering affordable, secure, clean power."

Al Ramahi added, "As one of the world’s largest single-site solar plants, Al Dhafra exemplifies Masdar’s commitment to mobilising sustainable finance to accelerate the global energy systems transformation." Masdar’s participation highlights the linkage between international capital markets and Abu Dhabi’s long-duration renewable projects, including solar PV developments across the region.

EDF power solutions and Jinko Power are also core project partners and bond sponsors. The shareholding structure includes TAQA with 40 percent, Masdar with 20 percent, EDF power solutions with 20 percent, and Jinko Power with 20 percent. Their combined roles cover development, operational expertise, and coordination with lenders, institutional investors, and rating agencies supporting the Green Bonds.

Luc Koechlin, Chief Executive Officer Middle East of EDF Group and EDF power solutions, said, "Inaugurated during COP28, the Al Dhafrah Solar PV Power Plant, developed by EDF power solutions alongside its partners, has demonstrated a strong operational track record by delivering innovative, clean energy solutions that power today 200,000 households."

Koechlin said that the US$870.75 million refinancing represents a significant point in the project’s financial development. He added that the transaction enables certification of Al Dhafra Solar PV as a fully green asset, consistent with recognised sustainable finance frameworks used across the global bond market.

"This green bond refinancing is supporting the continued operation and long-term resilience of the plant while contributing to the strengthening of the power system against the impacts of climate change and advancing Abu Dhabi’s energy transition ambitions. It also reinforces EDF’s role as a leading renewable energy developer, delivering low-carbon and innovative solutions through sustainable finance in the UAE," Koechlin said.

From Jinko Power’s side, Charles Bai, President of Jinko Power International Business, said that the deal reflects investor confidence. Bai described the successful refinancing through Green Bonds as strong evidence of global capital markets’ trust in Abu Dhabi and in large, bankable renewable assets at utility scale.

Bai said, "At Jinko Power, we remain firmly committed to partnering with leading sponsors, lenders, and institutional investors to deliver high-quality renewable infrastructure that meets the highest international standards. We believe that trust-based, long-term partnerships are fundamental to scaling sustainable investment, unlocking opportunities, and accelerating the global energy transition," he added.

Commenting from the project company, Ali Albeshr, Executive Managing Director of Al Dhafrah PV Energy Company, said, "This refinancing marks an important milestone for Al Dhafrah PV, reflecting the project’s stable operating performance, robust risk framework, and long-term cash flow visibility. The successful execution of the green bond further strengthens the project’s financial resilience and supports disciplined, long-term operation in line with international best practices and sustainability standards."

The Al Dhafra Solar PV refinancing shows how Abu Dhabi entities are using Green Bonds to secure long-term capital, support solar PV expansion and maintain stable project cash flows. With clear environmental standards, international ratings and participation from TAQA, EWEC, Masdar, EDF power solutions and Jinko Power, the transaction reinforces the UAE’s broader clean energy and sustainable finance objectives.

With inputs from WAM