Abu Dhabi Securities Exchange (ADX) has officially welcomed the listing of $1 billion in green bonds issued by Masdar, the UAE’s leading clean energy company, in two separate tranches.
According to data from ADX, the first tranche is set at $500 million, featuring a fixed interest rate of 4.875 percent, maturing on July 25, 2029. The second tranche, also amounting to $500 million, carries a fixed interest rate of 5.25 percent and matures on July 25, 2034.
This bond issuance generated significant interest from investors both regionally and globally, with subscription orders peaking at $4.6 billion, resulting in an oversubscription rate of 4.6 times.
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In July 2024, Masdar successfully raised $1 billion through its green bond issuance under its Green Finance Framework. This announcement followed the company’s inaugural issuance of $750 million on the International Securities Market of the London Stock Exchange a year earlier.
The recent issuance consisted of two tranches of $500 million each, with tenors of 5 and 10 years, and coupons of 4.875 percent and 5.25 percent, respectively. There was robust demand from both regional and international investors, with the order book hitting $4.6 billion, reflecting an oversubscription of 4.6 times. The allocation was finalized with an average distribution of 70 percent to international investors and 30 percent to MENA investors.
The $1 billion raised have been used to support Masdar’s equity commitments for new greenfield projects, many of which are situated in developing economies, as the company aims for a target portfolio capacity of 100 GW by 2030.
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