Masdar Successfully Raises $1 Billion Through Second Green Bond Issuance 

Source: wam.ae

Abu Dhabi Future Energy Company, known as Masdar, has announced the successful raising of $1 billion through its second green bond issuance under its Green Finance Framework. This follows their initial $750 million issuance on the International Securities Market of the London Stock Exchange last year.

The issuance consists of dual tranches, each valued at $500 million, with tenors of 5 and 10 years and coupon rates of 4.875% and 5.25%, respectively. The bond issuance saw substantial interest from both regional and international investors, with the order book peaking at $4.6 billion, resulting in an oversubscription of 4.6 times. The final allocation was divided, with 70% going to international investors and 30% to MENA investors.

The $1 billion raised will fund Masdar’s equity commitments on new greenfield projects, many of which are in developing economies. This initiative is part of Masdar’s ambitious goal to achieve a portfolio capacity of 100GW by 2030.

Mohamed Jameel Al Ramahi, CEO of Masdar, stated, “Following the successful launch of our first green bond in 2023, our second green bond issuance for $1 billion underscores investor confidence in Masdar’s financial robustness and its sustainability credentials. The funds will be pivotal in advancing our ambitious portfolio of renewable energy projects, further cementing our role as a key player in supporting an equitable energy transition by increasing energy access in emerging markets and the Global South.”

Mazin Khan, CFO 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 component 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 as strongly rated as Masdar offer investors bonds that can make such a positive impact across the ESG spectrum. Even fewer companies can tell investors exactly where every dollar of their money is going and its impact.”