Abu Dhabi’s clean-energy provider Masdar raised $1 billion in its second green bond issue, with two $500 million tranches having five- and ten-year tenors and 4.875% and 5.25% coupons.
Demand was high, with an order book of $4.6 billion, a 4.6-fold oversubscription. International investors received 70% and MENA investors 30%.
Company intends to utilise the funds to finance its equity investments in new greenfield projects, with a focus on developing economies. The company aims to achieve a portfolio capacity of 100GW by 2030.
Masdar, a clean-energy company in Abu Dhabi, raised $1 billion in two $500 million green bonds. The coupons on these five- and ten-year tranches are 4.875% and 5.25%.
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The renewable energy company stated that the order book peaked at $4.6 billion, signifying a 4.6-fold oversubscription rate. Thirty percent went to investors in the Middle East and North Africa, and seventy percent went to foreign investors.
The money raised from this offering will help Masdar finance its equity investments in brand-new greenfield projects, many of which are located in underdeveloped nations. By 2030, the corporation wants to reach a 100GW portfolio capacity.
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Masdar plans to issue up to $3 billion in green bonds under its Green Finance Framework. This is the second such issue; the first was a $750 million initial public offering of green bonds on the London Stock Exchange in 2023.
ADNOC, the state energy major, controls 24% of Masdar, while TAQA, the government-owned energy business of Abu Dhabi, owns 33%.
About Masdar
Masdar is a leader in green hydrogen and one of the fastest-growing renewable energy firms in the world, putting the UAE at the forefront of the energy shift.
