UAE-based renewable energy-focused developer Masdar announced today that it has raised $750 million in its inaugural green bond offering, with proceeds aimed at financing its buildout of new “dark green” renewable energy projects.
Founded in 2006, Abu Dhabi-based Masdar develops utility scale renewable energy and green hydrogen projects around the world. The company has set goals to scale its global renewable energy capacity to 100 GW, from around 20 GW today, and production of green hydrogen to 1 million tonnes by 2030.
Masdar Chairman and UAE Minister of Industry and Advanced Technology, Sultan Al Jaber said:
“It is vital to make finance more available, accessible and affordable for developing economies if we have any chance of meeting climate goals to supercharge sustainable development. Ahead of the UAE hosting the UN climate change conference, COP28, we must champion initiatives that advance climate finance and decarbonization. Today, the successful issuance of Masdar green bonds will support these twin aims, by helping to provide funding towards renewable energy projects where they are needed most.”
Masdar said that the new issuance marks the first part of a program to raise up to $3 billion to meet the company’s equity commitments on new renewable energy projects towards its 2030 goal. The offering follows the recent publication of Masdar’s Green Finance Framework, which lists eligible categories for use of proceeds from green bond offerings, including solar power, wind power, electricity transmission and distribution, and energy storage.
According to Masdar, the proceeds will be used for investment “exclusively in ‘dark green’ renewable energy projects, many of which will be in developing economies and climate-vulnerable countries that have a critical need for investment.”
Niall Hannigan, Masdar’s Chief Financial Officer, said:
“The proceeds from our inaugural bond offering will be deployed in developing new renewable energy projects around the world. These projects will make a major contribution towards mitigating climate change, but they will also make a real difference to the local communities they serve, and that makes us incredibly proud.”
Demand for the offering was strong, with the order book reaching $4.2 billion, or more than 5.6x oversubscribed, and pricing tightening 35 bp between launch and final terms.
Masdar CEO Mohamed Jameel Al Ramahi said:
“The success of this debut green bond issuance is 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.”