Masdar raises $1 billion through second Green Bond to fund new global renewables projects

Abu Dhabi Future Energy Company – Masdar, the UAE’s clean energy powerhouse, today announced it has successfully raised US$1 billion through its second green bond issuance, under its Green Finance Framework.

The announcement comes one year after the company’s first successful issuance of US$750 million on the International Securities Market of the London Stock Exchange.

The issuance comprises dual tranches of US$500 million each, with tenors of 5 and 10 years and coupons of 4.875 and 5.25 percent respectively.

There was strong appetite from regional and international investors with the orderbook peaking at US$4.6 billion, an oversubscription of 4.6x. Allocation was finalised with an average split of 70 percent to international investors and 30 percent to MENA investors.

The US$1 billion proceeds from the issuance will be deployed to fund Masdar’s equity commitments on new greenfield projects, several in developing economies, as the company pursues a target portfolio capacity of 100GW 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 US$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.”

Mazin Khan, Chief Financial Officer of Masdar, added, “As we have 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 an important component of our investor relations story, but it is also a commitment that we are transparently fulfilling through the publication of our audited annual allocation and impact reporting. 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.”