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UAE’s Masdar Introduces First USD 750 Million 10-Year Green Bond to Deploy Green Projects

Align with Masdar’s Green Finance Framework, net proceeds from this bond and future offerings will be utilised to outlay in ‘dark green’ renewable energy projects, which will be in boosting economies and climate-vulnerable nations that have a crucial need for investment.

July 21, 2023. By EI News Network

Abu Dhabi Future Energy Company PJSC – Masdar declared the completion of its first green bond issuance for USD 750 million 10-year senior unsecured Notes.

Align with Masdar’s Green Finance Framework, net proceeds from this bond and future offerings will be utilised to outlay in ‘dark green’ renewable energy projects, which will be in boosting economies and climate-vulnerable nations that have a crucial need for investment.

This bond is under a program to procure up to USD 3 billion of bonds to fulfil Masdar’s equity funding commitments on new renewable energy projects in the boundaries and overseas, as it seeks to develop its worldwide portfolio to 100 GW of capacity by 2030.

Proceeds from all bond offerings under the programme 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.

HE Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President-Designate, added, “It is vital to make finance more available, accessible and affordable for developing economies if we have any chance of meeting climate goals to supercharge sustainable development. Ahead of the UAE hosting the UN climate change conference, COP28, we must champion initiatives that advance climate finance and decarbonization. Today, the successful issuance of Masdar green bonds will support these twin aims, by helping to provide funding towards renewable energy projects where they are needed most.”

Mohamed Jameel Al Ramahi, Masdar’s Chief Executive Officer, stated, “The success of this debut green bond issuance is 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. We are thankful for the trust that the financial community has placed in us and we look forward to the involvement of many top class investors in our journey towards delivering renewable energy and accelerating the net-zero transition around the globe.”

The bond was rated A2 by Moody’s and A+ by Fitch, in line with the corporate credit ratings of the company, and was priced at a coupon rate of 4.875 percent with maturity on 25 July 2033.

The issuance was arranged and offered through a syndicate of joint lead managers and book-runners comprising BNP Paribas, Citi, First Abu Dhabi Bank, HSBC, SMBC Nikko, Société Générale and Standard Chartered.

Established in 2006, Masdar is the UAE’s clean energy powerhouse. It is present in over 40 countries and has invested in a portfolio of renewable energy projects with a combined capacity of around 20GW. Masdar aims to grow this to at least 100GW by 2030. The company is also targeting green hydrogen production of 1 million tonnes per annum by the same year.

Tags:

Masdar’s Green Finance Framework

Renewable Energy Projects

Solar projects

Wind projects

Renewable power transmission

Battery storage projects

ESG parameters