Masdar says $1bn green bond pile-in shows investor appetite undimmed
Abu Dhabi renewables giant in second issuance as it pursues ambitious growth agenda
Masdar claimed an oversubscribed $1bn green bond issue shows continuing investor appetite for its ambitious renewable energy growth agenda.
The Abu Dhabi-based developer announced the successful issuance a year after its debut green bond raised $750m.
The second green bond issuance comprised dual tranches of $500m each, with tenors of five and ten years and coupons of 4.875% and 5.25% respectively, said Masdar, which added that the bond was almost five time oversubscribed.
The funds will be used to underpin Masdar’s growth strategy, which is among the most ambitious in global renewables and is seeking to hit 100GW by 2030, around five times its current level, with proceeds directed to “equity commitments on new greenfield projects, several in developing economies”.
The joint lead managers and bookrunners on the issuance were First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis and MUFG.
Masdar CEO Mohamed Jameel Al Ramahi said: “Following the successful launch of our first green bond in 2023, our second green bond issuance for $1bn underscores investor confidence in Masdar’s financial robustness and its sustainability credentials.
“The funds will be pivotal in advancing our ambitious portfolio of renewable energy projects, further cementing our role as a key player in supporting an equitable energy transition by increasing energy access in emerging markets and the Global South.”
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