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.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
1 comment
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.