Masdar Green REIT signs green financing commitment with First Abu Dhabi Bank

Masdar City through its Masdar Green Real Estate Investment Trust (REIT), has signed a financing commitment of $200m with First Abu Dhabi Bank (FAB)

The agreement, relating to financing of the REIT portfolio, is meant to facilitate further acquisitions and portfolio growth. FAB will act as sole mandated lead arranger and bookrunner, green loan coordinator, agent, security agent and account bank for this transaction.

#MasdarCity, #Masdar’s pioneering sustainable urban development, through its #MasdarGreenREIT, has signed a financing commitment in the amount of USD$200,000,000, with #FAB relating to financing of the #REIT portfolio to facilitate further acquisitions and portfolio growth. pic.twitter.com/ztvSimi1cf

— Masdar (@Masdar) January 19, 2022

“Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific environmental, social and governance (ESG) practices criteria,” said Abdulla Balalaa, executive director, Masdar City and chairman of the REIT. “The Masdar Green REIT’s portfolio currently includes four commercial properties within Masdar City. The financing from First Abu Dhabi Bank, will help the REIT in building its sustainable real estate portfolio through additional acquisitions of properties in Masdar City.”

“The properties within the Masdar Green REIT’s current portfolio consume approximately 40 per cent less electricity and water than comparable buildings in Abu Dhabi, targeting sustainability ratings of three Pearls or above on Abu Dhabi’s Estidama Pearl Building Rating System, while one asset is also LEED Platinum certified. This REIT also intends to provide a vehicle through which third-party, sustainable developers can monetise their assets, attracting both real estate developers to Masdar City, and aspiring local and international sustainable investors.”

Mustafa Al Khalfawi, head of global banking UAE and global head of government, sovereigns and public sector, Investment Banking Group, said: “First Abu Dhabi Bank has made a commitment to fund projects that deliver tangible environmental and social benefits, and we are leading the way forward in financing the transition to a more sustainable future.”

In 2018, Masdar signed the first green revolving credit facility in the Middle East, helping to support its investments in global clean technology and sustainable real estate projects.

Also read: Power Letters 2020: Mohamed Jameel Al Ramahi, CEO, Masdar