Calling it a “historic moment” for Abu Dhabi Future Energy Company (Masdar) and climate financing, Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar oversaw the successful completion of its first green bond issuance for $750 million 10-year senior unsecured Notes at London Stock Exchang (LSE) on Monday.
The renewable energy company’s $750 million 10-year green bond offering was oversubscribed more than five times when it closed on July 19 this year.
Masdar aims to grow its global portfolio to 100GW of capacity by 2030 and the $750 million green bond is the first part of a programme to raise up to $3 billion to meet its equity funding commitments on new renewable energy projects at home and overseas.
Proceeds from all bond offerings will be deployed towards the greenest projects in the renewables sector, namely solar, wind, renewable power transmission and distribution infrastructure, and battery storage assets, and strict ESG criteria will apply to restrict the eligibility of projects.
The company also plans a secondary listing of its green bond offering on the Abu Dhabi Securities Exchange (ADX) later this year.
Masdar makes mark with green bonds
A proud Dr Al Jaber, who is the founding CEO of Masdar when it was established in 2006, commented: “This is a defining moment for Masdar and climate finance and we are delighted to stand on the world stage at this historic market opening ceremony.
“The demand for green bonds is extremely high and will enable investment in renewable energy projects, many of which will be in developing economies and climate-vulnerable countries. But there is more to do if we are to unlock finance for the energy transition to support the tripling of global renewable energy capacity by 2030.
“The successful issuance of Masdar green bonds will support this aim by helping to provide funding towards renewable energy projects where they are needed most.”
Established in 2006, Masdar is the UAE’s clean energy powerhouse. It is active in over 40 countries and has invested in a portfolio of renewable energy projects with a combined capacity of around 20 gigawatts (GW). The company aims to grow this to at least 100 GW by 2030. The company is also targeting green hydrogen production of 1 million tonnes per annum by the same year.
CEO Mohamed Jameel Al Ramahi said: “Today we’re proud to celebrate the success of Masdar’s debut green bond issuance, a testament to the pioneering spirit of all the people who have worked incredibly hard over the last 17 years to grow Masdar into one of the world’s leading renewable energy companies.”
Julia Hoggett, CEO, LSE, and Head of Equities, Capital Markets, LSEG, said: “We congratulate Masdar on the successful listing of its debut green bond on the London Stock Exchange, the proceeds of which will support renewable energy projects. We are proud that our markets are helping to accelerate the low-carbon transition by providing access to capital for companies, funds and governments worldwide.”
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