Abu Dhabi’s future-forward energy giant, Masdar, celebrated a pivotal moment as it marked its initial green bond issuance at the London Stock Exchange (LSE) – a grand $750 million 10-year senior unsecured note.
The monumental event was graced by the presence of dignitaries like Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of Masdar; Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Mansoor Abulhoul, the UAE Ambassador to the UK, and Masdar’s CEO, Mohamed Jameel Al Ramahi.
With its listing on July 19, 2023, the green bond witnessed an overwhelming response, being oversubscribed more than fivefold. This reception accentuates the heightened appetite for sustainable investments from global investors.
This bond issuance marks the beginning of Masdar’s ambitious program to amass up to $3 billion. The aim is to fund new renewable projects domestically and internationally, reinforcing its vision to augment its global portfolio to an impressive 100GW by the turn of the decade. A secondary listing of the green bond on the Abu Dhabi Securities Exchange (ADX) is also on the horizon later this year.
Since its inception in 2006, under the aegis of its founding CEO Dr. Sultan Al Jaber, Masdar has relentlessly championed renewable energy. Boasting a portfolio exceeding 20GW across 40 nations, and with investments surpassing $30 billion, the company is steadfast in its mission to achieve a 100GW portfolio by 2030. Masdar’s journey exemplifies the UAE’s fervor to pioneer decarbonization and climate finance on a global stage.
Expressing his views, Dr. Al Jaber stated, “This monumental listing symbolizes Masdar’s dedication to climate finance. The burgeoning demand for green bonds will bolster investments in renewable ventures, especially in developing and climate-sensitive regions. Our focus is to amplify global renewable energy capacity threefold by 2030, and these green bonds are pivotal to this cause, channeling funds to the most impactful projects.”
Echoing this sentiment, Al Ramahi added, “Masdar’s inaugural green bond listing is a testament to our enduring commitment and the relentless endeavors of our team over 17 years. This move aligns with our innovative Green Bonds Framework from March 2023, which was lauded with the top-tier ‘SQS1’ rating from Moody’s Investors Service. This is a part of our expansive blueprint for sustainable growth.”
Julia Hoggett, the CEO of LSE, lauded Masdar’s strides, stating, “Masdar’s successful green bond listing on LSE underscores our shared mission to promote sustainable energy projects. LSE is honored to foster the low-carbon shift by connecting global entities with vital capital resources.”
Masdar remains unwavering in its commitment, directing proceeds from these bond offerings towards the most sustainable ventures in the renewable realm, encompassing solar, wind, and advanced infrastructure projects. Rigorous ESG criteria will be paramount, ensuring only the most impactful projects receive backing.
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