UAE flagship renewable energy company Masdar launches first US$750 million 10-ye… – Press Release

  • Net proceeds will be used to invest exclusively in new clean energy projects in connection with the company’s Green Finance Framework
  • The debut green bond was 5.6x oversubscribed demonstrating investor confidence in Masdar’s financial strength and its 17 years of sustainability credentials
  • Offering is part of the UAE clean energy champion’s long-term plan to raise up to US$3 billion for new renewable energy projects

ABU DHABI, UAE, July 19, 2023 /PRNewswire/ — Abu Dhabi Future Energy Company PJSC – Masdar announced the successful completion of its first green bond issuance for US$750 million 10-year senior unsecured Notes today. There was exceptionally strong appetite from regional and international investors with the orderbook peaking at US$ 4.2bn, i.e. oversubscription of 5.6x. Pricing tightened 35bps between launch and final terms, with a final landing spread of 115bps over US Treasuries and a coupon of 4.875%. Allocation was finalized with a split of 87.5% to international investors and 12.5% to MENA investors. 

The debut green bond demonstrates investor confidence in the financial strength of Masdar, which has credit ratings of A2 (Moody’s) and A+ (Fitch), and its strong sustainability credentials. In line with Masdar’s Green Finance Framework, net proceeds from this bond and future offerings will be used to invest exclusively in ‘dark green’ renewable energy projects, many of which will be in developing economies and climate-vulnerable countries that have a critical need for investment.

This bond is the first part of a program to raise up to US$3 billion of bonds 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. 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…