Masdar celebrated the successful completion of its inaugural green bond issuance. The issuance involved the placement of senior unsecured Notes amounting to $750 million for a 10-year period on the London Stock Exchange.
Set up in 2006, Masdar is a prominent name in the clean energy sector within the UAE. Active across more than 40 countries, the company has invested in a diverse range of renewable energy projects, boasting a collective capacity of approximately 20 GW. In its pursuit of growth, Masdar aims to increase capacity to a minimum of 100 GW by 2030. The company is also directing its efforts towards achieving a green hydrogen production rate of 1 million tonnes per annum by the same target year.
Present at the market opening were HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate, and Chairman of Masdar. Also in attendance were HE Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, Ambassador HE Mansoor Abulhoul, UAE Ambassador to the UK, and Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi.
On July 19, 2023, Masdar concluded a 10-year green bond offering valued at US$750 million on the London Stock Exchange (LSE). The overwhelming response from both regional and international investors resulted in the issue getting oversubscribed more than five times. This holds immense historical significance in the extraordinary journey of the UAE’s leading renewable energy enterprise. Established in 2006 under the visionary leadership of its founding CEO, now Chairman, Dr. Sultan Al Jaber, Masdar has played a pioneering role in the global renewable energy sector for 17 years.
Guided by Dr. Sultan Al Jaber, Masdar has played a pivotal role in the development of over 20GW of renewable energy capacity across 40 countries. As the UAE prepares to host the UN climate change conference, COP28, under the stewardship of Dr. Sultan as President-Designate, this milestone is a testament to UAE’s and Masdar’s unwavering commitment to driving decarbonization and climate finance on a global scale.
HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar said, “This is a defining moment for Masdar and climate finance and we are delighted to stand on the world stage at this historic market opening ceremony. The demand for green bonds is extremely high and will enable investment in renewable energy projects, many of which will be in developing economies and climate-vulnerable countries. But there is more to do if we are to unlock finance for the energy transition to support the tripling of global renewable energy capacity by 2030. The successful issuance of Masdar green bonds will support this aim, by helping to provide funding towards renewable energy projects where they are needed most.”
Mohamed Jameel Al Ramahi, Masdar’s Chief Executive Officer, added, “Today we’re proud to celebrate the success of Masdar’s debut green bond issuance, a testament to the pioneering spirit of all the people who have worked incredibly hard over the last 17 years to grow Masdar into one of the world’s leading renewable energy companies. It follows the publication of our innovative Green Bonds Framework, published in March 2023, which received the highest Sustainability Quality Score of ‘SQS1’ from Moody’s Investors Service, and is part of a broader program to fund our ambitious growth plans.”
Julia Hoggett, CEO, LSE plc, and Head of Equities, Capital Markets, LSEG, noted, “We congratulate Masdar on the successful listing of its debut green bond on the London Stock Exchange, the proceeds of which will support renewable energy projects. We are proud that our markets are helping to accelerate the low-carbon transition by providing access to capital for companies, funds and governments worldwide.”
This bond issuance marks the initial phase of a broader initiative designed to raise up to US$3 billion. The funds will be used for fulfilling Masdar’s equity funding obligations for upcoming renewable energy ventures, both domestically and internationally. This aligns with Masdar’s objective of expanding its global portfolio to achieve a capacity of 100 GW by 2030. To ensure adherence to stringent environmental, social, and governance (ESG) standards, stringent criteria will be enforced to limit project eligibility.
Additionally, Masdar also plans to list its green bond offering on the Abu Dhabi Securities Exchange (ADX) later this year.