Masdar's Successful Green Bond Issuance Marks Milestone in Sustainable Finance
Key Ideas
- Masdar raises US$1 billion through its third green bond issuance, totaling US$2.75 billion since 2023 launch.
- Bond oversubscribed 6.6 times, offering 5 and 10-year tenors for green energy projects, including green hydrogen.
- Strong international investor interest with 85% going to international investors and 15% to MENA investors.
- Rated AA- by Fitch and A1 by Moody's, managed by consortium including First Abu Dhabi Bank and J.P. Morgan.
Masdar, the Abu Dhabi Future Energy Company, has successfully raised US$1 billion through its third green bond issuance, bringing the total green bond financing to US$2.75 billion since the program's launch in 2023. The bond was issued in two tranches of US$500 million each, with 5 and 10-year tenors and coupons of 4.875% and 5.375% respectively. The proceeds will be directed towards greenfield renewable energy projects, including green hydrogen and standalone battery storage, under Masdar's Green Finance Framework. Mohamed Jameel Al Ramahi, Masdar's CEO, highlighted the investor community's confidence in Masdar's financial strength and long-term vision. The bond allocation attracted strong international interest, with 85% going to international investors. Masdar's green bond program complements its other financing activities, such as the US$6 billion non-recourse financing for over 11 gigawatts of clean energy capacity in various countries. The issuance, rated AA- by Fitch and A1 by Moody's, was managed by a consortium of financial institutions, solidifying Masdar's global leadership in sustainable finance.
Topics
Utilities
Investing
Renewable Energy
Clean Energy
Sustainable Development
Financial Markets
Green Finance
International Finance
Bond Issuance
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