Masdar, the UAE’s leading clean energy company, announced that it has successfully raised $1 billion through its second green bond issuance under its Green Finance Framework. This follows the company’s first successful issuance of $750 million on the International Securities Market of the London Stock Exchange a year ago.
The issuance consists of two tranches of $500 million each, with tenors of 5 and 10 years and coupons of 4.875% and 5.25%, respectively. There was strong demand from regional and international investors, with the orderbook reaching $4.6 billion, representing an oversubscription of 4.6 times. The allocation was finalised with an average split of 70% to international investors and 30% to MENA investors.
The joint lead managers and bookrunners on the issuance were First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis and MUFG.
The $1 billion proceeds from this issuance will be used to fund Masdar’s equity commitments on new greenfield projects, many of which are in developing economies, as the company aims for a target portfolio capacity of 100 GW 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 $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.”