TAQA FY 2020 Proforma Consolidated Results and Dividend Policy
TAQA shares and bonds have reacted positively
Share price has rallied and daily value traded significantly increased
Price (AED)
• TAQA's share price has tripled (up ~200%) since deal announcement
• ADX market index up 10% over the same period
• Average daily value traded up from US$ 0-1mn to US$ 2-3mn
2.0
20
1.8
1.6
1.4
3 Feb
29 Apr
1 July
AGM approval Closing
Announcement
10 Nov 13 Dec
9m 2020 results Dividend policy
and new proposed approved; interim
dividend policy dividends distributed
14 Feb
FY 2020
resutls
3 Nov
Notice of BoD
AFOL discussion
20
20
18
16
14
Daily traded value (USDmn)
Bond yields improved and spreads to Mubadala and Abu Dhabi tightened
Yield spread
• TAQA bonds now pay only 0.16% more and yield the same as the Abu Dhabi
sovereign for 10 and 30-year borrowing (vs. 0.75% and 0.60% premium transaction)
• TAQA bonds are currently trading flat to Mubadala's curve, which is rated at the
sovereign level but trades at a spread to it
• TAQA 10-year bonds currently yield 2.258% and 30-year bonds 3.282%
1.8%
1.4%
COVID-19 market dislocation
3 Feb
Announcement
29 Apr
AGM approval
1 July
Closing
10 Nov
9m 2020 proforma
results and new
proposed dividend
5%
policy
3 Nov
Notice of BoD
FOL discussion
4%
Yield
1.2
110
1.0
0.8
0.6
0.4
0.2
0.0
Jan-20
Apr-20
Traded Value (USDmn; RHS)
Source: Bloomberg, as of 26 February 2021
Jul-20
Oct-20
TAQA (AED)
TAQA AED 1.39
(+208% vs Feb 3 2020)
1.0%
10
8
0.6%
6
ADSMI
(+10%)
4
0.2%
2
3%
Yield 2.258% (RHS)
(-84bps vs Feb 3)
2%
Spread to AD
16bps (-61bps)
1%
TAQA
Spread to Mubadala
-1bps (-47bps)
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
0
-0.2%
Jan-21
ADX General (rebased)
TAQA 2030 vs. Mubadala 2028 (& 2030*)
TAQA 4.875% 2030 yield (RHS)
TAQA 2030 vs. Abu Dhabi 2029 (& 2030**)
10
Source: Bloomberg as of 26 February 2021
* Starting 18 May 2020 as new on-the-run benchmark; ** starting 14 April 2020View entire presentation