Under the legal leadership and guidance of General Counsel Jonathan Evans, Masdar, the Abu Dhabi Future Energy Company, achieved a significant milestone with the successful completion of its debut green bond issuance for US$750 million 10-year senior unsecured Notes. The offering received overwhelming support from regional and international investors, with the orderbook reaching USD4.2 billion, indicating an impressive oversubscription of 5.6 times. The bond issuance showcases the investor community’s confidence in Masdar’s financial strength, underscored by its credit ratings of A2 (Moody’s) and A+ (Fitch), and its 17-year track record in sustainability.
Aligned with Masdar’s Green Finance Framework, the net proceeds from this green bond and future offerings will be exclusively invested in ‘dark green’ renewable energy projects. These projects will predominantly be located in developing economies and climate-vulnerable countries, where much-needed investment will drive sustainable development. As part of Masdar’s long-term strategy to raise up to USD3 billion for new renewable energy projects, this debut bond issuance is just the beginning.
The green bond programme aims to support Masdar’s equity funding commitments for new renewable energy projects worldwide. The company has set ambitious goals, seeking to expand its global portfolio to 100GW of capacity by 2030. All bond offerings under the programme will be directed towards the greenest projects in the renewables sector, including solar, wind, renewable power transmission and distribution infrastructure, and battery storage assets. To ensure strict adherence to environmental, social, and governance (ESG) standards, rigorous criteria will govern the eligibility of projects.
Moody’s and Fitch have both given the bond a rating of A2 and A+, respectively, in line with the company’s credit ratings. The final coupon rate was set at 4.875% with a maturity date of 25 July 2033. The issuance was managed and offered through a syndicate of joint lead managers and bookrunners, including BNP Paribas, Citi, First Abu Dhabi Bank, HSBC, SMBC Nikko, Société Générale, and Standard Chartered.
Masdar’s Green Finance Framework, established in February 2023 and updated in May 2023, complies with the latest Green Loan Principles. To provide additional assurance, Moody’s has issued a Second Party Opinion on the framework, further reinforcing its commitment to sustainable finance.
Masdar, founded in 2006, is the UAE’s leading clean energy entity, operating in over 40 countries and investing in a diverse portfolio of renewable energy projects with a combined capacity of approximately 20GW. The company aims to achieve at least 100GW of capacity by 2030 while also targeting green hydrogen production of 1 million tonnes per annum within the same timeframe. With this debut green bond, Masdar takes a significant step towards accelerating the global transition to clean and sustainable energy solutions.