London: Abu Dhabi Future Energy Company PJSC – Masdar – announced it has successfully raised $1 billion through a new bond issuance. The investments will fund equity commitments on new greenfield projects, several of which are in developing economies, Masdar said in a statement.
The transaction, carried out under the company’s Green Finance Framework, comprises dual tranches of US$500 million each, with tenors of 5 and 10 years and coupons of 4.875 per cent and 5.25 per cent, respectively.
Masdar also said there was a strong appetite from regional and international investors, with the order book peaking at $4.6 billion and an oversubscription of 4.6x.
The allocation was finalised with an average split of 70 per cent to international investors and 30 per cent to MENA investors.
Following this, Masdar plans to raise $3 billion in green bonds to support its goal of expanding its portfolio to 100GW of renewable energy capacity by 2030
The announcement comes one year after the company successfully issued its first $750 million on the International Securities Market of the London Stock Exchange.
Mohamed Jameel Al Ramahi, CEO of Masdar, said, “Following the successful launch of our first green bond in 2023, our second green bond issuance for $1 billion underscores investor confidence in Masdar’s financial robustness and sustainability credentials.”
Al Ramadi added, “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.”
In addition to the green bond program, Masdar is also making acquisitions of operational companies in mature markets, injecting capital and expertise, and substantially contributing to global markets' renewable energy capacity.
Mazin Khan, Masdar's Chief Financial Officer, 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.”
