Masdar announces the success of its inaugural green bond issue: $750 million, 10-year maturity. The issue marks Masdar’s commitment to energy transition and sustainable development. The funds will be invested exclusively in new renewable energy projects.
In this way, they will support developing economies and countries vulnerable to climate change. This will help mitigate the effects of climate change and improve the lives of the local communities concerned.
Masdar Green Bond: Massive success with $4.2 billion subscribed
The success of this issue is undeniable, with an exceptionally strong appetite on the part of regional and international investors. They subscribed a total of US$4.2 billion, 5.6 times more than the initial amount. As a result, the bond price tightens by 35 basis points between launch and final terms. The final spread is 115 basis points over US Treasuries, with a coupon of 4.875%.
Masdar’s green bond testifies to investors’ confidence in the company’s financial strength. It is backed by credit ratings of A2 (Moody’s) and A+ (Fitch). What’s more, the show underscores Masdar’s solid sustainability credentials. It has been firmly committed to promoting renewable energies for 17 years.
Positive impact of Masdar’s green bond on developing economies and the climate
Masdar will exclusively invest the funds raised through this bond, as well as future issues, in renewable energy projects qualified as “dark green”, in line with their Green Finance Framework. These projects will meet a crucial need for investment in developing economies and countries vulnerable to climate change. Masdar’s goal is to contribute to the global energy transition and increase its portfolio to 100 GW of energy capacity by 2030.
UAE Minister of Advanced Industries and Technologies, Masdar Chairman and COP28 President, Sultan Al Jaber, stresses the importance of facilitating access to more affordable financing for developing economies in order to achieve climate goals for sustainable development. Masdar’s green bond issue supports these objectives by providing funds for renewable energy projects where they are most needed.
Masdar Green Bond’s contribution to the Global Ecological Transition
Mohamed Jameel Al Ramahi, Masdar’s Managing Director, is grateful for the trust the financial community has placed in the company. He also points out that this issue marks a significant step towards achieving Masdar’s global objectives. They aim to accelerate the transition to a carbon-free economy.
Niall Hannigan, Masdar’s CFO, highlights the use of funds from this first issue to actively develop new renewable energy projects around the world. These projects will play a crucial role in mitigating climate change. They will also improve the quality of life of the local communities they serve.
Energy leader Masdar’s Green Bond rated and backed by global investors
Masdar’s green bond is rated A2 (Moody’s) and A+ (Fitch), reflecting the company’s credit ratings. The interest rate is set at 4.875%, with a maturity date of July 25, 2033. The issue is organized by a syndicate of co-lead managers and bookrunners. It includes BNP Paribas, Citi, First Abu Dhabi Bank, HSBC, SMBC Nikko, Société Générale and Standard Chartered.
This successful issue of Masdar’s first green bond marks an important milestone in the company’s commitment to sustainable development and the fight against climate change. By investing exclusively in renewable energy projects, Masdar is actively helping to create a cleaner, more sustainable future for generations to come.
