Abu Dhabi Future Energy Co. (Masdar) has raised $1 billion through its second green bond issuance.
The transaction, carried out under Masdar’s Green Finance Framework, includes dual tranches of $500 million each. The bonds mature in five and 10 years and bear coupons of 4.875% and 5.25%, respectively.
Masdar said there was “strong appetite from regional and international investors” with the orderbook peaking at $4.6 billion, an oversubscription of 4.6 times. The final allocation saw an average split of 70% to international investors and 30% to Middle East and North African investors.
The joint lead managers and bookrunners on the issuance were First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis and MUFG.
The $1 billion investment will be deployed to fund equity commitments on new greenfield projects, Masdar said. The company is targeting a portfolio capacity of 100 GW by 2030.
Mohamed Jameel Al Ramahi, Masdar Chief Executive Officer, said the result “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.”
Masdar launched its first green bond sale a year ago on the London Stock Exchange. It then raised $750 million and the company says projects financed by the first bond are expected to annually mitigate 5.4 million tonnes in greenhouse gas emissions.
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