"source" Green bonds are offered at a value of 3.67 billion dirhams to support sustainable financing
Abu Dhabi, May 16 / WAM / Today, Abu Dhabi Future Energy Company “Masdar” announced the completion of its new version of green bonds with a value of 3.67 billion dirhams “approximately US billion dollars”, raising the total amount that the company has collected since the launch of the green bond program to 10.092 billion dirhams “approximately $ 2.75 billion”, and contributes to strengthening its global leading position in the field of sustainable financing.
The version consists of two equal slides of 1.8 billion dirhams (approximately 500 million US dollars), each, with the deadlines for 5 and 10 years, with an annual return of 4.875% and 5.375%, respectively.
The subscription process witnessed a great turnout and exceptional by investors at the region and the world, including specialized green funds, as subscription requests exceeded 24.24 billion dirhams at the peak of “$ 6.6 billion”.
The margins came over the US Treasury bonds at 80 basis points for the five -year segment, and 90 basis points for the ten -year segment, in the lowest pricing of “Masdar” through its publications to date, reflecting the confidence of investors and the stability of the credit merit of the institution.
The bonds were allocated by 85% for international investors and 15% for investors of the Middle East and North Africa, in confirmation of the attractiveness of the publication globally and regionally.
It is a source from the world leading companies in the field of sustainable financing support, respectively, it issued green bonds worth 2.7 billion dirhams “approximately $ 750 million” in 2023, and 3.67 billion dirhams “approximately US dollars” in 2024, and the revenues of these bonds were allocated to develop new projects in the field of clean energy in developed and developing countries.
The green bond program comes as an extension of the activities of the other financing company, which included the issuance of financing without the right to return of a value of 16.5 billion dirhams (approximately 6 billion US dollars) in 2024 to develop 12 new projects in nine different countries with a total production capacity exceeding 11 GW.
Mohamed Jamil Al -Ramahi, CEO of “Masdar”, said that the third edition of green bonds within three years reflects the continuous and growing confidence of the investment authorities in the strong financial foundations on which “Masdar” is based, and its vision is long -term.
He added that the bond revenues will contribute to a pivotal role in achieving the company’s goal of raising the productive capacity of its global project portfolio, and will also enable a source to enhance its role in supporting a qualitative shift in the global energy sector, especially in emerging markets and developing economies that are often the need for these investments.
He explained that the full revenues of the “Source” bond program will be allocated to develop new renewable energy projects that focus on promoting sustainability and environmental protection, which gives investors confidence on how to direct their investments.
The first green “source” bonds revenues that were launched in 2023 were invested in financing projects at the end of the same year, with a total capacity of 3.7 GW, and will contribute to avoiding the emission of 5.4 million tons of carbon dioxide annually when it is completely operated.
Source began implementing seven major projects around the world in 2024, including two solar PV plants in Azerbaijan with a total capacity of 760 MW, and the “Al -Ajaban” project for solar photovoltaic energy in the UAE with a capacity of 1.5 GW.
The company funds all its investments in these projects from the revenues of green bonds.
Mazen Khan, the financial president of the “Masdar” company, said that this latest version of the green bonds, which is compatible with the green financing framework for the “Masdar” company, reflects the great investor confidence in the company’s financial flexibility and its strategic direction.
He pointed out that in light of seeking to build a fair energy system for the future, the source of the “Source” continues to collect sustainable financing on a large scale to support the development of new clean energy projects, whether within the country or at the international level, and giving investors the opportunity to contribute to an active role in supporting the green financing agenda.
Masdar updated its framework for green financing last March, with the expansion of eligibility standards to include green hydrogen projects and independent power storage systems.
Moody’s Investors Services “Moody’s” gave the updated green financing framework in April a “excellent” rating within the sustainable quality point index, which is the highest possible classification.
In line with the credit rating of “Masdar”, this third version of the bonds obtained the “AA-” classification by “Fitch” and “A1” by Moody’s agency.
The bond offering process was organized by a joint group of directors and subscription coordinators that included Abu Dhabi First Bank, Abu Dhabi Commercial Bank, JP Morgan, ING, Antisa San Paulo, Bank of China, DB Bank, BNB Paribas, and Credit Agricole.
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