Masdar starts green sukuk sale: State-owned renewables player Masdar has launched its benchmark USD-denominated dual-tranche green bond issuance with five- and 10-year tenors, set to be listed on the London Stock Exchange, according to a stabilization notice issued on Wednesday. This is nearly a year after Masdar raised USD 1 bn from a similar issuance that carried yields of 4.875% and 5.25%.

What we know: The issuance is reportedly valued at USD 1 bn, and Initial price thoughts (IPTs) were set in the area of 115 bps above US Treasuries for the 5-year notes, and 125 bps above US Treasuries for the 10-year notes, Zawya reported on Wednesday. This is part of the company’s USD 3 bn EUR Medium Term Note (EMTN) Program, the news outlet said.

Proceeds will be earmarked for eligible green projects, in line with Masdar’s Green Finance Framework, Zawya reports, citing an investor document it had seen. Interest will be paid semi-annually on 21 May and 21 November, Zawya reported.

Masdar’s credit rating was recently upgraded: Masdar last month was upgraded to an A1 credit rating by Moody’s, with a stable outlook, up from a previous A2 rating. The upgrade came on the back of strong backing from the Abu Dhabi government and shareholders as the company pursues its 100 GW renewable energy capacity target by 2030.

ADVISORS- Masdar mandated Abu Dhabi Commercial Bank, Bank of China, BNP Paribas, Crédit Agricole CIB, DBS Bank, First Abu Dhabi Bank, IMI–Intesa Sanpaolo, ING, and JP Morgan as joint lead managers and bookrunners.

MORE REGIONAL DEBT NEWS-

#1- SAB closes green sukuk issuance: Tadawul-listed Saudi Awwal Bank (SAB) closed a USD 650 mn additional tier-one (AT1) private placement divided across 3.3k green sukuks at a minimum amount of USD 200k each, according to a disclosure issued on Thursday. The green sukuk carries an annual yield of 6.5%, the statement said.

What we know: The regulation-S compliant paper will be listed on the London Stock Exchange’s International Securities Market, according to a separate disclosure to Tadawul. The issuance is part of the lender’s USD 5 bn AT1 capital sukuk program, which aims to shore up its capital base. It’s unclear whether the issuance will be listed for trading on the secondary market.

SOUND SMART- Additional AT1 sukuk are Shariah-compliant bonds that banks issue to ramp up their capital. This type of sukuk doesn’t have a set maturity date — meaning they can last forever unless the bank decides to buy them back.

ADVISORS- Our friends at HSBC are joint lead managers on the transaction, alongside Merrill Lynch International, Citigroup Global Markets, J.P. Morgan Securities, Kamco Investment Company, Mizuho International, Standard Chartered Bank, and Warba Bank.

#2- OCP gets EUR 350 mn from AFD: Morocco’s state-owned phosphate giant OCP Group has signed a EUR 350 mn financing agreement with the French Development Agency (AFD) to support its USD 13 bn Green Investment Program running through 2027, according to a press release issued on Monday. The facility will be disbursed in tranches tied to the achievement of performance benchmarks.

We knew this was coming: French Economy and Finance Minister Bruno Le Maire said AFD was lining up EUR 350 in financing to support OCP’s decarbonization efforts on the sidelines of a Moroccan-French business forum late last month.

Where is the money going? The funding will back key pillars of the group’s green transition, including boosting clean energy capacity and unconventional water sources, scaling green hydrogen and green ammonia production, as well as embedding climate and biodiversity risk metrics into the company’s risk management systems.

#3- Egypt’s Obelisk Solar to get a boost from EBRD: The European Bank for Reconstruction and Development (EBRD) is reviewing a senior loan of up to USD 173.5 mn for Scatec’s 1.1 GW Obelisk solar project with 200 MWh of battery energy storage in Nagaa Hammadi, according to its project overview published last week. The project will be backed with a first loss risk cover from the European Fund for Sustainable Development plus (EFSD+) Hi-Bar programme. The loan is scheduled for approval on 11 June.

The bank has been generous: The EBRD also approved a USD 30 mn equity bridge loan for the project, according to a press release from Monday. Scatec had reported that the loan was in the works when it broke ground on the project last week.

ICYMI- The first phase will bring 561 MW of solar energy and 200 MWh of battery storage online in 1H 2026, while the second phase will add another 564 MW of solar power in 2H 2026.

Where’s the rest of the money coming from? Scatec signed equity bridge loans worth USD 120 mn for the project and put off the project equity injections until construction is done. The Arab Energy Fund will also provide USD 90 mn.

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