Masdar pockets USD 1bn from second green bond sale

UAE-based renewables developer Masdar has completed its second green bond placement, securing USD 1 billion (EUR 918.5m) for investment in new greenfield renewable energy projects.

The clean energy major said on Friday that the offering was oversubscribed 4.6 times, with an orderbook peaking at USD 4.6 billion.

Carried out under the company’s Green Finance Framework, the transaction includes dual tranches of USD 500 million each. The bonds mature in five and 10 years and bear coupons of 4.875% and 5.25%, respectively. They received an "AA-" rating from Fitch and "A2" from Moody’s.

First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis and MUFG acted as joint lead managers and bookrunners on the offering.

Masdar, which targets a global portfolio of 100 GW by 2030, intends to use the raised proceeds to support equity commitments in new greenfield projects, some of which in developing economies.

Masdar launched its first green bond sale on the London Stock Exchange a year ago, raising USD 750 million. Funds from the issuance were used to finance 3.7 GW of projects in emerging markets and the Global South, which are expected to help offset 5.4 million tonnes of greenhouse gas emissions.

The UAE group said it will back its 2030 goal with green bond sales totalling USD 3 billion.

(USD 1.0 = EUR 0.918)

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