Masdar, the Abu Dhabi state-owned renewable energy firm, has made its debut on the London Stock Exchange (LSE) with a $750 million green bond offering. The bond, which is slated to mature in 2033, garnered significant interest and was oversubscribed more than five times. The proceeds from this issuance will support Masdar’s clean energy projects, particularly in developing economies and climate-vulnerable nations.
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate, and Chairman of Masdar, highlighted the strong demand for green bonds. He emphasized that such bonds play a crucial role in financing renewable energy initiatives, especially in regions that require substantial investment to transition to cleaner energy sources. Dr. Al Jaber believes that the success of Masdar’s green bond offering will contribute to the broader goal of expanding global renewable energy capacity threefold by 2030.
The $750 million bond is just the first step in a larger initiative by Masdar to raise up to $3 billion in equity funding. The aim is to support the development of new renewable energy projects both in the United Arab Emirates (UAE) and abroad. With this funding, Masdar strives to increase its global portfolio to 100 gigawatts (GW) of capacity by 2030. Currently, Masdar has already established over 20 GW of renewables capacity across more than 40 nations, representing a total investment of over $30 billion.
Masdar intends to list its green bond offering on the Abu Dhabi Securities Exchange (ADX) later this year, expanding its reach to regional investors. The company plans to allocate the proceeds from all bond issuances within the program to finance solar, wind, and renewable power transmission and distribution infrastructure projects, along with battery storage assets.
By embracing this sustainable finance strategy, Masdar is strengthening its commitment to combat climate change and promote the clean energy transition. The company’s green bond listing on the LSE marks a significant milestone, as it helps to secure the necessary funding for renewable energy ventures, particularly in developing nations. With its ambitious target of 100 GW capacity by 2030, Masdar is well-positioned to drive global renewable energy growth and make a substantial contribution to a cleaner and more sustainable future.
