- Proceeds will be used to invest exclusively in
new greenfield renewable energy projects under Masdar's Green
Finance Framework
- Bond demand 4.6x oversubscribed, reflecting significant
investor confidence in Masdar's continued growth and sustainability
credentials
- Projects financed by Masdar's 2023 debut USD750 million green bond expected to mitigate
5.4 million tonnes in GHG emissions annually
- Masdar currently plans to raise up to USD3 billion in green bonds to support its goal
of expanding portfolio to 100GW of renewable energy capacity by
2030
LONDON, July 19,
2024 /PRNewswire/ -- Abu Dhabi Future Energy Company
PJSC – Masdar, the UAE's clean energy powerhouse, today announced
it has successfully raised USD1
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 USD750 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% 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 finalized with an
average split of 70% to international investors and 30% to MENA
investors.
The USD1 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.
Highlighting the delivery of its commitments under the company's
Green Finance Framework, which attracts the highest possible rating
from Moody's of SQS-1, Masdar's recently published 2023 Green
Finance Report detailed the allocation and impact of its debut
green bond. The proceeds have been used to fund projects in
emerging markets and the Global South with 3.7GW in total nominal
capacity and are expected to mitigate 5.4 million tonnes in GHG
emissions annually when fully operational.
In addition to the green bond program, Masdar is making
significant acquisitions of operational companies in mature
markets, injecting capital as well as bringing expertise, and
making a substantial contribution to the renewable energy capacity
of global markets.
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 USD1 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, said: "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."
In line with Masdar's corporate credit ratings, this second
issuance was rated AA- by Fitch and A2 by Moody's. Fitch recently
upgraded Masdar's credit rating one notch to 'AA-', stable outlook,
recognizing the company's financial strength and the support from
its shareholders, the latter evidenced by their significant
contributions to fund Masdar's growth ambitions.
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.
Since its establishment in 2006, Masdar has been a key enabler
of the UAE's vision as a global leader in sustainability and
climate action. The company has developed and partnered in projects
in over 40 countries, with a mandate to increase its renewable
energy portfolio capacity to 100GW by 2030 and to become a leading
producer of green hydrogen by the same year.
For more information please visit: https://www.masdar.ae and
connect: facebook.com/masdar.ae and twitter.com/masdar
About Masdar
Masdar (Abu Dhabi Future Energy Company) is one of the world's
fastest-growing renewable energy companies. As a global clean
energy pioneer, Masdar is advancing the development and deployment
of solar, wind, geothermal, battery storage and green hydrogen
technologies to accelerate the energy transition and help the world
meet its net-zero ambitions. Established in 2006, Masdar has
developed and invested in projects in over 40 countries with a
combined capacity of over 20 gigawatts (GW), providing affordable
clean energy access to those who need it most and helping to power
a more sustainable future.
Masdar is jointly owned by TAQA, ADNOC, and Mubadala, and is
targeting a renewable energy portfolio capacity of 100GW by 2030
while aiming to be a leading producer of green hydrogen by the same
year.
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