By Mary-Katherine Stinson
Lexington, Ky., July 19 – Abu Dhabi Future Energy Co. PJSC (Masdar) debuted its first green bond, completing the issuance of $750 million of 10-year senior notes (A2//A+), according to a press release.
The 4 7/8% notes due July 25, 2033 priced with a final spread of 115 basis points over Treasuries, tightening 35 bps between launch and final terms.
The order book peaked at $4.2 billion, representing an oversubscription of 5.6x.
Allocation was finalized with a split of 87.5% to international investors and 12.5% to MENA investors.
Citigroup and First Abu Dhabi Bank worked as joint global coordinators.
BNP Paribas, HSBC, SMBC Nikko, Societe Generale and Standard Chartered Bank were the joint lead managers and joint bookrunners.
BNP Paribas and SMBC Nikko were the joint ESG structuring advisers.
Proceeds from this bond and future offerings will be used to invest exclusively in dark green renewable energy projects in line with Masdar's green finance framework.
This bond is the first part of a program to raise up to $3 billion of bonds for Masdar’s new renewable energy projects, as it seeks to grow its global portfolio to 100gw of capacity by 2030.
Masdar's green finance framework, established in February, was updated in May to reflect changes to the green loan principles. Moody's has issued a second party opinion on the framework.
Masdar is 96% indirectly owned by the government of Abu Dhabi via TAQA. It is the UAE’s clean energy champion and a leading developer and operator of utility-scale renewable energy projects.
| Issuer: | Abu Dhabi Future Energy Co. PJSC (Masdar)
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| Amount: | $750 million
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| Issue: | Senior notes
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| Maturity: | July 25, 2033
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| Bookrunners: | Citigroup, First Abu Dhabi Bank, BNP Paribas, HSBC, SMBC Nikko, Societe Generale and Standard Chartered Bank
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| ESG advisers: | BNP Paribas and SMBC Nikko
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| Coupon: | 4 7/8%
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| Price: | 99.5
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| Yield: | 4.939%
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| Spread: | Treasuries plus 115 bps
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| Pricing date: | July 18
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| Settlement date: | July 25
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| Ratings: | Moody’s: A2
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| Fitch: A+
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| Distribution | Regulation S
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| Price talk: | Treasuries plus 150 bps area
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| ISIN: | XS2651619285
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