Crédit Agricole CIB acts as Bookrunner on Mubadala’s inaugural green bond issuance

Green finance
01/11/2023

Following on from the establishment of its Green Finance Framework (“GFF”), Mubadala priced a highly successful USD750mn 10.5-year Reg S/144A inaugural green bond.

 Mubadala is a well-known name in the international bond markets and was last in the market in May 2023 with a dual tranche USD1.5bn issuance.

An amount equal to the net proceeds will be used to finance and/or refinance Eligible Green Investments according to Mubadala’s GFF in five eligible categories: Green Buildings, Energy Efficiency, Renewable Energy, Pollution Prevention and Control and Clean Transportation with a look back/look forward period of up to 36 months.

As this was their inaugural green bond, Mubadala conducted a series of investor meetings focused on its GFF. Post the marketing exercise, Mubadala actively monitored the market for a window of issuance. Volatility was at elevated levels due to movements in US Rates and geopolitical tensions in the Middle East. With a relatively stable rates backdrop, the transaction was announced at London open on Wednesday the 26th with guidance set at CT10+150bps for a 10.5-year benchmark sized issuance. Investor demand was strong with the orderbook peaking at USD6.5bn, allowing Mubadala to tighten the spread by 40bps to CT10+110bps and size the transaction at USD750mn. The size of the orderbook and the level of price tightening demonstrates the strong investor following that Mubadala has in the bond markets and is a testament to the investor marketing and communication Mubadala undertook. 

Crédit Agricole CIB acted as Joint Bookrunner on the transaction. This is our second successive debt capital markets mandate from Mubadala in 2023. 

Headquartered in Abu Dhabi, Mubadala is among the world’s largest state owned investment funds. With assets under management of USD 276bn (as of Dec. 31st 2022), Mubadala has a strong portfolio of diverse revenue generating assets across various industries globally as well as strategic partnerships with global companies. In September 2023, Mubadala established its GFF to finance and refinance projects which enable the transition to a low carbon and climate resilient economy in alignment with both the UAE Government’s as well as Mubadala’s own Net Zero 2050 goals.

“Mubadala is a core client of ours from the region and we are thrilled to have partnered with them on their inaugural green bond. This transaction is a further affirmation of our world leading ESG franchise and is our second successive mandate from Mubadala.”

Dyan Kannangara

Head of Debt Capital Markets MEA

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