{"id":94027,"date":"2024-07-22T00:00:00","date_gmt":"2024-07-22T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/masdar-raises-usd-1-bn-in-second-green-bond-issuance\/"},"modified":"2024-07-22T00:00:00","modified_gmt":"2024-07-22T00:00:00","slug":"masdar-raises-usd-1-bn-in-second-green-bond-issuance","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/07\/22\/masdar-raises-usd-1-bn-in-second-green-bond-issuance\/","title":{"rendered":"Masdar raises USD 1 bn in second green bond issuance"},"content":{"rendered":"

State<\/strong>-owned renewable energy developer Masdar raised USD 1 bn in its second green <\/strong>bond issuance<\/strong>, according to a press release(pdf)<\/a>. 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 the statement. In line with Masdar's corporate credit ratings, this second issuance was rated AA- by Fitch and A2 by Moody's.<\/p>\n

REMEMBER- <\/strong>Fitch recently <\/span>upgraded<\/a> Masdar's credit rating one notch to 'AA-', stable outlook, recognizing the company's financial strength and the support from its shareholders, the latter evidenced by their significant contributions to fund Masdar's growth ambitions.<\/span><\/p>\n

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

We knew this was in the works: <\/strong>Masdar said in April<\/a> 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. <\/p>\n

Background: <\/strong>The energy giant raised USD 750 mn last year in its debut green bond sale<\/a>, which it listed on both the London Stock Exchange and the ADX. The bonds \u2014 which were 5.6x oversubscribed \u2014 were priced at 115 basis points over US treasuries from an initial guidance of around 150 bps over the same benchmark.<\/p>\n

ADVISORS: <\/strong>HSBC, 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.<\/p>\n

BACKGROUND- The regional sustainable debt market has been on a tear this year:<\/strong> UAE\u2019s Sharjah government issued EUR 500 mn in sustainability bonds<\/a>, while Kuwait\u2019s Warba Bank issued USD 500 mn green sukuk<\/a>, and Qatar\u2019s USD 2.5 green bond<\/a> attracted USD 14 bn in orders. Al Rajhi also raised USD 1 bn from a 5-year sustainable sukuk sale in March<\/a>. Meanwhile, Qatar\u2019s QIIB<\/a> listed USD 500 mn sustainable sukuk issuance on the London Stock Exchange in January, and the UAE sovereign fund Mubadala<\/a> listed USD 4.5 bn and AED 750 mn green bonds on the ADX. <\/p>\n

IN OTHER DEBT NEWS-<\/p>\n

The National Bank of Ras Al Khaimah (<\/strong>RAKBank<\/a><\/strong>) issued a USD 600 mn, five-year EUR <\/strong>Medium-Term Note bond, <\/strong>under its Social Finance Framework, which outlines the use of funds for supporting micro, small, and medium enterprise customers, it said in a statement<\/a> on Friday. The issuance was priced at a spread of 135 bps over US treasuries \u2014 tightened by 35 bps, on the back of \u201cvery strong demand and investor interest.\u201d It is the first ever public social bond in the GCC.<\/p>\n

The issuance was 3x oversubscribed, <\/strong>allowing the lender to upsize the bond to USD 600 mn. It features a 5.375% annual yield rate, with a yield to maturity of 5.439%.<\/p>\n","protected":false},"excerpt":{"rendered":"

The issuance was 4.6x oversubscribed<\/p>\n","protected":false},"author":1,"featured_media":94028,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1546],"tags":[68,7,318,171,211],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-94027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-debt-watch","tag-debt-watch","tag-enterpriseam-uae","tag-green-bonds","tag-masdar","tag-renewables","wpautop","entry"],"acf":{"mongo_id":"e0cd7ef9-7627-4210-960d-e5b8108a3fa6","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/7\/1535.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Masdar raises USD 1 bn in second green bond issuance","related_issue":[94020],"teaser":"The issuance was 4.6x oversubscribed","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/7\/.d42fc5b8-dbcf-4e74-bce6-8afdc4cdf8e7.mp3"},"yoast_head":"\nMasdar raises USD 1 bn in second green bond issuance - 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