- Masdar raised $1 billion through its second green bond issuance, divided into two $500 million tranches.
- The green bonds saw a significant oversubscription, with the orderbook peaking at $4.6 billion, indicating strong investor interest.
- 70% of the bonds were allocated to international investors, while 30% were allocated to MENA investors.
- The proceeds will fund Masdar’s equity commitments in new greenfield projects, primarily in developing economies, supporting their goal of a 100GW portfolio capacity by 2030.
Abu Dhabi’s clean-energy firm Masdar has successfully raised $1 billion through its second green bond issuance. The issuance, part of Masdar’s Green Finance Framework, comprised dual tranches of $500 million each. The bonds have tenors of five and ten years, offering coupons of 4.875% and 5.25%, respectively.
The demand for these green bonds was significant, with the orderbook peaking at $4.6 billion, resulting in an oversubscription of 4.6 times. The allocation was divided, with 70% of the bonds going to international investors and 30% to MENA investors.
The proceeds from this issuance will fund Masdar’s equity commitments in new greenfield projects, many of which are in developing economies. This aligns with the company’s ambitious goal of achieving a portfolio capacity of 100GW by 2030.
Masdar’s Green Finance Framework aims to raise up to $3 billion in green bonds. This latest issuance follows the company’s debut sale of $750 million in green bonds in 2023, which was listed on the London Stock Exchange.
Masdar is a key player in the renewable energy sector, with ownership shared among three major Abu Dhabi entities: TAQA, which holds 43%; Mubadala, with 33%; and the state energy major ADNOC, with a 24% stake.
By securing substantial investments through green bonds, Masdar is reinforcing its commitment to sustainable energy projects, particularly in regions that need them the most, while also expanding its global footprint in the renewable energy market.
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Last Updated on July 20, 2024 by Safiya K
