Abu Dhabi’s Masdar, a leading clean energy company, has successfully raised $1 billion through its second green bond issuance under its Green Finance Framework.
This follows the company’s first successful issuance of$750 million, which took place on the London Stock Exchange’s International Securities Market.
The new issuance consists of two tranches of $500 million each, with five- and ten-year tenors, and respective coupons of 4.875% and 5.25%.
Investor demand was high, with the order book peaking at $4.6 billion, resulting in an oversubscription of 4.6 times. The allocation saw 70% going to international investors and 30% to MENA investors.
“Following the successful launch of our first green bond in 2023, our second green bond issuance for $1 billion underscores investor confidence in Masdar’s financial robustness and its sustainability credentials,” said Masdar CEO Mohamed Jameel Al Ramahi.
Mazin Khan, CFO of Masdar, added, “This is an important component of our investor relations story, but it is also a commitment that we are transparently fulfilling through the publication of our audited annual allocation and impact reporting.
“Few companies as strongly rated as Masdar offer investors bonds that can make such a positive impact across the ESG spectrum. Even fewer companies can tell investors exactly where every dollar of their money is going and its impact.”
The proceeds from the bond will fund Masdar’s equity commitments to new greenfield projects, many in developing economies, the company said. Masdar has previously set itself a target of achieving s portfolio capacity of 100GW by 2030.
