Abu Dhabi Future Energy Company PJSC – Masdar raises USD1 billion green bond
On July 18th, Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy champion, raised USD1 billion through its second green bond under its Green Finance Framework, which received the highest possible rating from Moody’s of SQS1.
Crédit Agricole CIB acted as Joint Bookrunner on the issuance.
The issuance comprised dual tranches of US$500 million each, with tenors of 5 and 10 years and coupons of 4.875% and 5.25% respectively. There was strong appetite from regional and international investors with the orderbook peaking at US$4.6 billion, an oversubscription of 4.6x. Allocation was finalized with an average split of 70% to international investors and 30% to MENA investors.
The USD1 billion proceeds from the issuance will be deployed to fund Masdar’s equity commitments on new Greenfield projects, several in developing economies, as the company pursues a target portfolio renewable energy capacity of 100GW by 2030.
Highlighting the delivery of its commitments under the company’s Green Finance Framework, Masdar recently published its 2023 Green Finance Report detailing the allocation and environmental impact of its debut green bond. Masdar was supported by Crédit Agricole CIB in the preparation of the Green Finance Report, and the allocation and impact metrics benefit from an independent limited assurance report by Ernst and Young.
Supporting the growth of renewable energy is a key objective of Crédit Agricole CIB, we are therefore delighted to have acted as joint bookruner on Masdar’s return to the bond markets.
Dyan Kannangara
Head of Debt Capital Markets MEA, Crédit Agricole CIB
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