This bond is the first part of a programme to raise up to $3bn to meet Masdar’s equity funding commitments on new renewable energy projects
Abu Dhabi Future Energy Company – Masdar marked the successful completion of its first green bond issuance for $750m 10-year senior unsecured notes at the London Stock Exchange (LSE).
The market opening was attended by Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar, Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, Ambassador Mansoor Abulhoul, UAE Ambassador to the UK, and Masdar Chief Executive Officer, Mohamed Jameel Al Ramahi.
Masdar completed a $750m 10-year green bond offering on the LSE which was oversubscribed by more than five times with exceptionally strong appetite from regional and international investors, noted the energy company. Rated A2 by Moody’s and A+ by Fitch, in line with the corporate credit ratings of the company, the bond was priced at a coupon rate of 4.875 per cent with a maturity date in July 2033. The green bonds are listed on the London Stock Exchange’s International Securities Market (ISM).
The offering attracted global and regional investors, with final allocations of 87.5 per cent to international investors and 12.5 per cent to MENA investors, as per LSE.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar said, “This is a defining moment for Masdar and climate finance and we are delighted to stand on the world stage at this historic market opening ceremony. The demand for green bonds is extremely high and will enable investment in renewable energy projects, many of which will be in developing economies and climate-vulnerable countries.”
“But there is more to do if we are to unlock finance for the energy transition to support the tripling of global renewable energy capacity by 2030. The successful issuance of Masdar green bonds will support this aim, by helping to provide funding towards renewable energy projects where they are needed most.”
Congratulations to @Masdar celebrating raising $750m through its first ever issuance of green bonds, and commemorating the event by opening the Markets at London Stock Exchange.
Find out more: https://t.co/rRgYhJQnC1#Sustainability #Renewables #MarketOpen pic.twitter.com/Y74fpM8ck2
— London Stock Exchange (@LSEplc) August 7, 2023
Masdar’s mission to lead the energy transition
Masdar said its agenda to be at the forefront of energy transition has seen it develop over 20GW of renewables capacity across more than 40 countries, and invest more than $30bn to target a 100GW portfolio by 2030. As the UAE gets ready to host the UN climate change conference, COP28, with Dr Sultan as President-Designate, the green bond issuance showcases the UAE’s and Masdar’s commitment to advancing decarbonisation and climate finance around the world, noted the green energy company.
This bond is the first part of a programme to raise up to $3bn to meet Masdar’s equity funding commitments on new renewable energy projects at home and overseas, as it seeks to grow its global portfolio to 100GW of capacity by 2030. Masdar said it also plans a secondary listing of its green bond offering later this year on Abu Dhabi Securities Exchange (ADX), the second largest market in the Gulf region.
Proceeds from all bond offerings under the program will be deployed towards the greenest projects in the renewables sector, namely solar, wind, renewable power transmission and distribution infrastructure, and battery storage assets, and strict ESG criteria will apply to restrict the eligibility of projects.
Mohamed Jameel Al Ramahi, Masdar’s chief executive officer, said, “Today we’re proud to celebrate the success of Masdar’s debut green bond issuance, a testament to the pioneering spirit of all the people who have worked incredibly hard over the last 17 years to grow Masdar into one of the world’s leading renewable energy companies. It follows the publication of our innovative Green Bonds Framework, published in March 2023, which received the highest Sustainability Quality Score of ‘SQS1’ from Moody’s Investors Service, and is part of a broader program to fund our ambitious growth plans.”
Julia Hoggett, CEO and head of Equities, Capital Markets, LSEG, said, “We congratulate Masdar on the successful listing of its debut green bond on the London Stock Exchange, the proceeds of which will support renewable energy projects. We are proud that our markets are helping to accelerate the low-carbon transition by providing access to capital for companies, funds, and governments worldwide.”
Established in 2006, Masdar is the UAE’s clean energy powerhouse. It is active in over 40 countries and has invested in a portfolio of renewable energy projects with a combined capacity of around 20 gigawatts (GW). The company is also targeting green hydrogen production of 1 million tonnes per annum by the same year.
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