Abu Dhabi’s Masdar lists $750m green bond on ADX

Masdar, also known as Abu Dhabi Future Energy Company, has listed a $750m debut green bond on the Abu Dhabi Securities Exchange (ADX), as the company seeks to accelerate the development of renewable energy projects in developing countries.

The 10-year notes, which were 5.6 times oversubscribed, carry a 4.87 per cent coupon rate and will mature in July 2033. Masdar plans to use the proceeds from the issuance to fund new clean energy projects.

The green bond issuance was assigned an A2 rating by Moody’s and A+ by Fitch.

“With the proceeds of this bond issuance being used predominantly to finance new greenfield renewable projects in developing countries, this initiative is advancing our global investment in developing and emerging economies where it is needed most,” said Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, COP28 President-Designate and chairman of Masdar.

“Ahead of COP28, Masdar’s green bond bridges the financing gap between the Global North and the Global South, meeting a critical need for an equitable and inclusive energy transition.”

Masdar is active in more than 40 countries with a total electricity generation capacity of more than 20GW.

The clean energy firm has invested, or committed to invest, in worldwide projects with a combined value of more than $30bn with ambitious growth plans to reach 100GW and one million tonnes of green hydrogen by 2030.

“By offering access to companies with strong green strategies, we are proud to contribute to the UAE’s goal of achieving net-zero emissions by 2050,” said Hisham Khalid Malak, Chairman of ADX

“This national drive aligns with our commitment to supporting sustainable projects and helping investors find opportunities that align with their sustainability goals.”

The Abu Dhabi bourse said the listing brings the overall debt instruments listed on the exchange to 45.

ADX adds Masdar to its debt issuance list

Meanwhile, ADX aims to support the growth of the UAE’s dynamic and diversified economy and remains committed to promoting best practices and fortifying its footprint in a thriving financial ecosystem.

“As the demand for diversified income streams continues to grow, this addition strengthens our role as a catalyst for growth and a driver of sustainable investment,” said Malak.

TAQA listed a $1.5bn dual-tranche bond on the Abu Dhabi bourse in September, as the utility firm is championing energy transition with ambitious decarbonisation targets.

The dual-tranche senior unsecured notes – which form part of the company’s Global Medium Term Note Programme – will now be listed on both ADX and the London Stock Exchange.

The order book was nearly 10 times oversubscribed at the time of issuance in April, with regional and international investors placing total orders of more than $15bn. The notes are rated Aa3 by Moody’s and AA- by Fitch, in line with the company’s corporate credit rating.

Earlier this year, Sweihan PV Power Company made a secondary bond listing of $700m green bonds on the ADX.

Read: Abu Dhabi’s TAQA lists $1.5bn dual-tranche bonds on ADX