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ABU DHABI / WAM
Abu Dhabi Securities Exchange (ADX) welcomed the secondary listing of a $750 million Green Bond by Abu Dhabi Future Energy Company (Masdar), the global clean energy powerhouse based in Abu Dhabi.
The ten-year bond, which was 5.6 times oversubscribed, carries a 4.875 percent coupon rate and will mature in July 2033. It aims to fund new clean energy projects. The issuance was assigned an A2 rating by Moody’s and A+ by Fitch.
Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar, said, “Masdar is proud to be listing our first Green Bond on ADX in the UAE’s capital city of Abu Dhabi where Masdar was first established in 2006.
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. 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.”
Commenting on the listing, Hisham Khalid Malak, Chairman of ADX, said, “We are excited to support Masdar in their first green bond listing and expand our platform to provide investors with a wider range of asset classes. 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.”
He added, “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. This drive aligns with our commitment to supporting sustainable projects and helping investors find opportunities that align with their goals.”
In the lead-up to COP 28 in the UAE, ADX has seen an increase in the number of green bonds listed this year. This comes as part of issuers’ efforts to deploy capital towards sustainable and clean energy projects.
Last month, ADX welcomed the Abu Dhabi National Energy Company (TAQA) secondary listing of dual-tranche bonds valued at US$1.5 billion on ADX, and earlier in 2023, Sweihan PV Power Company made a secondary bond listing of US$700 million green bonds.
In its aim to support the growth of the UAE’s dynamic and diversified economy and reinforce Abu Dhabi’s positioning as an international market, ADX remains committed to promoting best practices and fortifying its footprint in a thriving financial ecosystem.