Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s leading clean energy company, has announced the successful raising of USD 1 billion through its second green bond issuance under its Green Finance Framework. This follows the company’s first successful issuance of USD 750 million on the International Securities Market of the London Stock Exchange last year.
The latest issuance consists of two tranches of USD 500 million each, with tenors of 5 and 10 years and coupons of 4.875% and 5.25%, respectively. The issuance received strong interest from regional and international investors, with the orderbook peaking at USD 4.6 billion, representing an oversubscription of 4.6 times. Allocation was finalized with 70% to international investors and 30% to MENA investors.
The USD 1 billion proceeds will fund Masdar’s equity commitments for new greenfield projects, many in developing economies, as the company aims for a portfolio capacity of 100GW by 2030.
Masdar’s 2023 Green Finance Report highlighted the allocation and impact of its first green bond, which attracted the highest possible rating from Moody’s of SQS-1. The proceeds funded projects in emerging markets and the Global South, totaling 3.7GW in nominal capacity and are expected to mitigate 5.4 million tonnes of GHG emissions annually when fully operational. Besides the green bond program, Masdar is also acquiring operational companies in mature markets, injecting capital, bringing expertise, and significantly contributing to global renewable energy capacity.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, stated: “Following the successful launch of our first green bond in 2023, our second issuance for USD 1 billion underscores investor confidence in Masdar’s financial robustness and sustainability credentials. The funds will advance our ambitious renewable energy projects, cementing our role in supporting an equitable energy transition and increasing energy access in emerging markets and the Global South.”
Mazin Khan, Chief Financial Officer of Masdar, commented: “As 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 crucial for our investor relations and a commitment we are transparently fulfilling through our audited annual allocation and impact reporting. Few companies as strongly rated as Masdar offer investors bonds with such a positive ESG impact and detailed transparency on the allocation of funds.”
The second issuance was rated AA- by Fitch and A2 by Moody’s, reflecting Masdar’s financial strength and shareholder support. The joint lead managers and bookrunners for the issuance were First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis, and MUFG.
Since its establishment in 2006, Masdar has been a key enabler of the UAE’s vision as a global leader in sustainability and climate action. The company has developed and partnered in projects in over 40 countries, with a mandate to increase its renewable energy portfolio capacity to 100GW by 2030 and become a leading producer of green hydrogen by the same year.
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