Masdar raises $1b through second green bond for clean energy projects

This follows the initial issuance in 2023 amounting to $750m.

Abu Dhabi-based energy firm Masdar has raised $1b through its second green bond issuance, under its Green Finance Framework, which will fund the company’s equity commitments on new greenfield projects as it targets a portfolio capacity of 100 gigawatts (GW) by 2030.

In a statement, Masdar said the issuance has dual tranches of $500m 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 $4.6b, an oversubscription of 4.6x. Allocation was finalised with an average split of 70% to international investors and 30% to MENA investors,” the company said 

Under the Green Finance Framework, Masdar said it has funded projects in emerging markets and the Global South with 3.7GW in total nominal capacity. These are expected to eliminate 5.4 million tonnes in carbon emissions annually when fully operational. 

The joint lead managers and bookrunners on the issuance were First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Citibank, HSBC, Standard Chartered, Credit Agricole CIB, Natixis, and MUFG.