Abu Dhabi’s Masdar Plans More Green Bonds After $1 Billion Deal

By Bloomberg

Jul 19, 2024

image is BloomburgMedia_SGV1Z0T1UM0W00_19-07-2024_16-00-09_638569440000000000.jpg

Solar panels at the Dhafra solar power plant near Abu Dhabi, United Arab Emirates, on Monday, Nov. 13, 2023. In June, Masdar and Taqa, the Abu Dhabi National Energy Co., began commercial operations at the 2-gigawatt Dhafra solar plant, developed with partners Jinko Power Co. and Electricite de France SA’s renewables arm and formally inaugurated it on Thursday. Photographer: Natalie Naccache/Bloomberg

(Bloomberg) -- Abu Dhabi’s main renewables energy company Masdar is planning to sell green bonds annually for the next few years to help fund a global expansion.

The company, also known as Abu Dhabi Future Energy Co. PJSC, raised $1 billion through its second dollar-denominated green bonds sale this week, after a debut issue for $750 million last year. Masdar is targeting stakes in 100 gigawatts of clean projects by 2030.

“Because we’ve got quite a sizable pipeline of projects, we expect to be a repeat issuer pretty much every single year — at least for the near future,” Chief Financial Officer Mazin Khan said in an interview Thursday.

The company sold $500 million each of five-year bonds at 4.875% and 10-year at 5.25%, Masdar said in a statement Friday. Future bond programs will be of a similar size or “hopefully larger,” said Khan.

Around $450 million of the funds from the sale have already been allocated to equity investments in renewable energy projects, he said.

Abu Dhabi government companies Taqa, Mubadala and oil producer Adnoc own Masdar.

By Verity Ratcliffe