Summary:
- Masdar raised $1 billion through its second green bond issuance.
- The bond issuance was oversubscribed 4.6 times.
- The funds will support new greenfield projects.
Masdar, the UAE’s leading clean energy firm, has successfully raised $1 billion through its second green bond issuance under its Green Finance Framework.
This achievement follows Masdar’s initial issuance of $750 million on the International Securities Market of the London Stock Exchange just a year ago.
The new issuance consists of two tranches totaling $500 million each, with maturities of five and 10 years. The bonds offer coupons of 4.875% and 5.25%, respectively.
Investor interest was robust, resulting in an oversubscription rate of 4.6 times, with the order book reaching $4.6 billion.
The allocation favored international investors, who received 70%, while 30% went to investors in the MENA region.
Proceeds from the issuance will support Masdar’s equity commitments to new greenfield projects, particularly in developing economies. This effort aligns with Masdar’s ambition to expand its renewable energy portfolio to 100GW by 2030.
Masdar’s inaugural green bond allocation Masdar’s 2023 Green Finance Report detailed the allocation and impact of its first green bond issuance.
The $750 million raised last year financed projects primarily located in emerging markets and the Global South, boasting a combined nominal capacity of 3.7 GW.
These initiatives are projected to annually mitigate 5.4 million tonnes of greenhouse gas emissions once fully operational.
In parallel with its green bond program, Masdar is actively acquiring operational companies in mature markets, injecting capital and expertise to significantly bolster global renewable energy capacity.
Mohamed Jameel Al Ramahi, CEO of Masdar, emphasized, “Following the successful launch of our inaugural green bond in 2023, our subsequent $1 billion green bond issuance underscores investor confidence in Masdar’s financial strength and sustainability credentials.
“These funds will play a crucial role in advancing our ambitious portfolio of renewable energy projects, reinforcing our commitment to fostering an inclusive energy transition by expanding energy access in emerging markets and the Global South.”
Source:
Gulf Business
