Masdar, the UAE’s premier clean energy entity, has successfully launched its debut green bond issuance, raising net proceeds of US$750 million. This substantial financial injection is earmarked exclusively for investment in clean energy projects, reflecting Masdar’s commitment to fostering sustainable, renewable energy solutions.
This bond issuance has been met with a resounding vote of confidence from the global investment community. The offering was over-subscribed by a remarkable 5.6 times, serving as a testament to Masdar’s financial stability and the credibility of its sustainable credentials, built over a span of 17 years.
This debut issuance is not a standalone event but forms a crucial part of Masdar’s long-term financial strategy. The company plans to raise up to US$3 billion to finance new renewable energy projects, showcasing its unwavering commitment to the growth and development of the renewable energy sector.
The proceeds from this green bond, along with those from future offerings, will be directed towards ‘dark green’ renewable energy projects. Masdar has set its sights on developing economies and climate-vulnerable countries, where the impact of such projects can be most transformative.
The bond, which carries impressive ratings of A2 by Moody’s and A+ by Fitch, was issued with a coupon rate of 4.875%. It is set to mature on July 25, 2033. Under the skillful legal supervision of General Counsel Jonathan Evans, Masdar closed its first green bond issuance for US$750 million 10-year senior unsecured Notes.
The bond issuance has piqued the interest of regional and international investors alike, with the order book reaching a staggering USD4.2 billion. This indicates an oversubscription of 5.6 times, further reinforcing the financial market’s confidence in Masdar’s sustainability initiatives.
Established in 2006, Masdar has set ambitious targets for the future. The company aspires to achieve at least 100GW of capacity by 2030, and is targeting green hydrogen production of 1 million tonnes per annum within the same timeframe. This debut green bond issuance is a significant step towards realizing these goals, as Masdar continues to lead the way in the clean energy revolution.
