Masdar Secures $1 Billion in Green Bonds for Global Renewable Projects

Masdar has announced the successful issuance of its second green bond, raising $1 billion under its Green Finance Framework. This comes one year after the company’s first issuance of $750 million on the International Securities Market of the London Stock Exchange.

The issuance is structured in dual tranches of $500 million each, with tenors of 5 and 10 years and coupon rates of 4.875% and 5.25%, respectively. The bond saw significant interest from regional and international investors, with the order book reaching $4.6 billion, marking an oversubscription of 4.6 times. The final allocation was split, with 70% going to international investors and 30% to MENA investors.

The $1 billion proceeds will be used to fund Masdar’s equity commitments in new greenfield projects, particularly in developing economies. Masdar aims to achieve a portfolio capacity of 100GW by 2030.

Mohamed Jameel Al Ramahi, CEO of Masdar, stated, “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. 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.”

Mazin Khan, CFO of Masdar, added, “As we have committed under our Green Finance Framework, we are raising green bonds and other green finance instruments to invest in new dark green projects. 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.”