|
Listen to this story:
|
- Massive Investor Confidence: Bond demand was 4.6x oversubscribed.
- Significant Environmental Impact: Projects funded by green bonds to cut 5.4 million tonnes of GHG emissions annually.
- Ambitious Expansion Goals: Targeting 100GW renewable energy capacity by 2030.
Masdar, the UAE’s leading clean energy company, has raised $1 billion through its second green bond issuance, following a successful $750 million debut last year. The proceeds will finance new greenfield renewable energy projects under Masdar’s Green Finance Framework.
Investor Confidence
The issuance, featuring dual tranches of $500 million each with tenors of 5 and 10 years and coupons of 4.875% and 5.25%, respectively, saw substantial demand from investors. The orderbook peaked at $4.6 billion, reflecting a 4.6x oversubscription.
“Our second green bond issuance underscores investor confidence in Masdar’s financial robustness and its sustainability credentials,” said Mohamed Jameel Al Ramahi, CEO of Masdar.
Environmental Impact
Masdar’s 2023 Green Finance Report highlighted the positive impact of its debut green bond, which funds projects in emerging markets and the Global South. These projects, with a total nominal capacity of 3.7GW, are expected to mitigate 5.4 million tonnes of GHG emissions annually once operational.
“Few companies offer investors bonds that can make such a positive impact across the ESG spectrum,” said Mazin Khan, CFO of Masdar. “We are transparently fulfilling our commitments through audited annual allocation and impact reporting.“
Expansion Plans
Masdar aims to raise up to $3 billion in green bonds to support its goal of expanding its renewable energy portfolio to 100GW by 2030. The $1 billion proceeds will fund new greenfield projects, many in developing economies, aligning with Masdar’s mission to support equitable energy transition.
Strong Credit Ratings
Reflecting Masdar’s financial strength and shareholder support, the second issuance received strong credit ratings of AA- by Fitch and A2 by Moody’s. Fitch recently upgraded Masdar’s credit rating to AA-, citing financial robustness and significant shareholder contributions.
“Our ratings reflect the solid financial foundation and strategic shareholder support backing Masdar’s ambitious growth plans,” added Al Ramahi.
Global Impact and Leadership
Since 2006, Masdar has been pivotal in advancing the UAE’s vision as a global leader in sustainability. With projects in over 40 countries, Masdar is set to increase its renewable energy portfolio and become a leading producer of green hydrogen by 2030.
Related Article: Masdar Announces Second Dollar-Denominated Green Bond Sale to Fund 100 Gigawatts of Clean Projects, Targeting $3 Billion
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.
Masdar’s commitment to renewable energy and sustainable growth continues to attract significant investor confidence, propelling global efforts to combat climate change and support sustainable development.