Masdar’s Inaugural 10-Year Green Bond Reaches A Significant Milestone With US$750 Million Issuance

Representational image. Credit: Canva

Abu Dhabi Future Energy Company PJSC, known as Masdar, celebrates a significant milestone with the completion of its inaugural green bond issuance for US$750 million in 10-year senior unsecured Notes. The issuance saw an overwhelming response from both regional and international investors, with the order book surpassing US$4.2 billion, marking an oversubscription of 5.6 times. The strong investor confidence in Masdar, which holds credit ratings of A2 (Moody’s) and A+ (Fitch), underscores its robust sustainability credentials.


Aligned with Masdar’s Green Finance Framework, the net proceeds from this green bond and future offerings will be dedicated exclusively to funding “dark green” renewable energy projects, particularly in developing economies and climate-vulnerable nations with significant investment needs. This strategic focus will accelerate the transition to clean energy solutions while adhering to strict environmental, social, and governance (ESG) criteria to ensure project eligibility.

The bond issuance is the initial phase of a larger program aimed at raising up to US$3 billion in bonds, primarily to meet Masdar’s equity funding commitments for new renewable energy ventures worldwide. The company’s ambitious vision aims to reach a global portfolio capacity of 100 GW by 2030. The proceeds from all bond offerings under this program will fuel renewable energy projects in solar, wind, renewable power transmission and distribution infrastructure, and battery storage assets.

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His Excellency Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar, and COP28 President-Designate, emphasized the significance of enhancing climate finance to promote sustainable development and address climate goals. The successful issuance of Masdar green bonds aligns with the UAE’s role in hosting COP28, championing initiatives that advance climate finance and decarbonization.

Mohamed Jameel Al Ramahi, CEO of Masdar, praised the commitment and dedication of the team in making this debut green bond issuance a success, transforming Masdar into a global leader in renewable energy over the past 17 years. The involvement of top-class investors will play a pivotal role in accelerating the net-zero transition and delivering renewable energy solutions worldwide.

Niall Hannigan, Chief Financial Officer of Masdar, emphasized the positive impact of the proceeds from the green bonds, which will be channelled into developing new renewable energy projects globally. These projects are not only crucial for mitigating climate change but will also contribute significantly to local communities, reflecting Masdar’s commitment to responsible and prudent growth plans.

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The bond was rated A2 by Moody’s and A+ by Fitch, in line with Masdar’s corporate credit ratings, and carries a coupon rate of 4.875%, with maturity set for 25 July 2033.

BNP Paribas, Citi, First Abu Dhabi Bank, HSBC, SMBC Nikko, Société Générale, and Standard Chartered acted as joint lead managers and book runners for the issuance.

Masdar’s Green Finance Framework, established in February 2023 and updated in May 2023, adheres to the Green Loan Principles, receiving a Second Party Opinion from Moody’s.

As a clean energy powerhouse, Masdar has a significant global presence, active in over 40 countries with a renewable energy project portfolio of approximately 20GW. The company is determined to expand this capacity to at least 100GW by 2030, while also targeting green hydrogen production of 1 million tonnes annually by the same year.

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