Abu Dhabi Future Energy Company – Masdar, the UAE’s leader in clean energy, has announced the successful raising of $1B through its second green bond issuance under its Green Finance Framework. This announcement comes one year after the company’s first successful issuance of $750M on the International Securities Market of the London Stock Exchange.
The issuance consists of dual tranches of $500m each, with tenors of five and 10 years and coupons of 4.875 and 5.25 per cent respectively.
Masdar raises $1B with green bond sale
There was strong demand from regional and international investors, with the order book reaching $4.6B, an oversubscription of 4.6 times. Allocation was finalized with an average split of 70 per cent to international investors and 30 per cent to MENA investors.
The $1B proceeds from the issuance will be used to fund Masdar’s equity commitments on new greenfield projects, several of which are in developing economies, as the company aims for a target portfolio capacity of 100GW by 2030.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “Following the successful launch of our first green bond in 2023, our second green bond issuance for $1B underscores investor confidence in Masdar’s financial strength and its sustainability credentials.”
“The funds will be crucial in advancing our ambitious portfolio of renewable energy projects, further cementing our role as a key player in supporting a fair energy transition by increasing energy access in emerging markets and the Global South.”
Mazin Khan, Chief Financial Officer of Masdar, added: “As we have committed under our Green Finance Framework, we are raising green bonds and other green finance instruments to invest in new dark green projects. This is an important aspect of our investor relations story, but it is also a commitment that we are transparently fulfilling through the publication of our audited annual allocation and impact reporting.”
“Few companies with as strong a rating as Masdar offer investors bonds that can make such a positive impact across the ESG spectrum. Even fewer companies can inform investors exactly where every dollar of their money is going and its impact.”
