UAE state-owned renewable energy developer Masdar has raised USD 1 bn in its second green bond issuance: The issuance consisted of two tranches worth USD 500 mn each, with five- and 10-year tenors, carrying yields of 4.875% and 5.25%, according to a press release(pdf). The energy giant raised USD 750 mn last year in its debut green bond sale, which it listed on both the London Stock Exchange and the ADX.

We knew this was in the works: Masdar said in April that it was planning to take a green bond issuance worth between USD 750 mn and 1 bn to market this year to secure funding for its renewable projects in Central Asia, specifically in Uzbekistan and Azerbaijan. This comes as part of a USD 3 bn bonds program aimed at funding clean energy initiatives in the UAE and globally.

The issuance saw strong demand, booking USD 4.6 bn in orders with a 4.6x oversubscription. Some 70% of the allocation went to international investors with the balance going to MENA investors.

ADVISORS: Our friends at HSBC, along with Abu Dhabi Commercial Bank, Citigroup, Credit Agricole, First Abu Dhabi Bank (FAB), Mitsubishi UFJ Financial Group, Natixis, and Standard Chartered Bank acted as joint lead managers and bookrunners.

BACKGROUND- The regional sustainable debt market has been on a tear this year: UAE’s Sharjah government issued EUR 500 mn in sustainability bonds, while Kuwait’s Warba Bank issued USD 500 mn green sukuk, and Qatar’s USD 2.5 green bond attracted USD 14 bn in orders. Al Rajhi also raised USD 1 bn from a 5-year sustainable sukuk sale in March. Meanwhile, Qatar’s QIIB listed USD 500 mn sustainable sukuk issuance on the London Stock Exchange in January, and the UAE sovereign fund Mubadala listed USD 4.5 bn and AED 750 mn green bonds on the ADX.

EGX30

28,653

+1.1% (YTD: +15.1%)

USD (CBE)

Buy 48.18

Sell 48.32

USD (CIB)

Buy 48.2

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Interest rates (CBE)

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28.25% lending

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ADX

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THE CLOSING BELL-

The EGX30 rose 1.1% at Thursday’s close on turnover of EGP 4.0 bn (equal to the 90-day average). Regional investors were the sole net sellers. The index is up 15.1% YTD.

In the green: Eastern Company (+5.7%), Elsewedy Electric (+5.3%), and GB Corp (+5.2%).

In the red: Palm Hills Development (-3.1%), Juhayna (-2.8%), and EFG Holding (-1.4%).

CORPORATE ACTIONS-

Qalaa’s debt buyback program comes to an end: Shareholders who subscribed to Qalaa Holdings’ debt buyback program will start receiving their debt notes — through authorized brokerage firms — starting 1 August and until 15 August, the company said in an EGX disclosure (pdf).

Remember: The debt buyback program is part of a wider plan to retire some USD 430 mn in foreign-currency debt. The company raised over EGP 2.6 bn from shareholders in the two-phase program.

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