UAE – Mubasher: Abu Dhabi Future Energy Company (Masdar) has raised $1 billion through its second green bond issuance, under its Green Finance Framework.
The issuance includes two tranches of $500 million each, with tenors of 5 and 10 years and coupons of 4.875% and 5.25% respectively, according to a press release.
The issuance was oversubscribed by 4.60 times, with total value of orders from regional and international investors amounting to $4.60 billion.
Around 70% of the bonds were allocated to international investors and 30% to investors from MENA.
The proceeds from the issuance will fund Masdar's equity commitments on new greenfield projects in developing economies, to help achieve the company’s target portfolio capacity of 100 gigawatts (GW) by 2030.
First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis, and MUFG were joint lead managers and bookrunners.
Mohamed Jameel Al Ramahi, CEO of Masdar, said: "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, Chief Financial Officer of Masdar, stated: “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."
Masdar completed in July its first green bond issuance with a total value of $750 million.
The company continued its series of lucrative steps with an agreement with RWE to develop the Dogger Bank South (DBS) Offshore Wind Farms in the UK.
Masdar's 2023 Green Finance Report highlights its Green Finance Framework, rated SQS-1 by Moody's. The debut green bond funded projects with 3.70 GW capacity in emerging markets, expected to reduce GHG emissions by 5.40 million tonnes annually when fully operational.
Masdar is also acquiring companies in mature markets, boosting global renewable energy capacity. The second green bond issuance was rated AA- by Fitch and A2 by Moody's, with Fitch upgrading Masdar's credit rating to AA-, citing financial strength and shareholder support.
