At a glance
- The order book reached $1.5 billion, 2.5 times the $600 million issue, according to Masdar.
- For allocators, the deal adds a $600 million, AA- rated, five-year blue bond to the transition bond shelf, with demand reported at 2.5 times the amount offered.
- Proceeds are earmarked for marine-based renewable projects, including floating solar and offshore wind, under Masdar's updated green finance framework.
Masdar raised $600 million in its first blue bond, a five-year issue the UAE renewable developer will use to finance marine-based projects including offshore wind.
The order book reached $1.5 billion, 2.5 times the $600 million issue, according to Masdar. The bond is rated AA- by S&P and Fitch, which Masdar said makes it the highest-rated publicly issued corporate blue bond to date. ESG Today reported the terms of the issuance.
For allocators, the deal adds a $600 million, AA- rated, five-year blue bond to the transition bond shelf, with demand reported at 2.5 times the amount offered.
Proceeds are earmarked for marine-based renewable projects, including floating solar and offshore wind, under Masdar's updated green finance framework. The framework also lists the transmission and distribution of offshore electricity to shore as eligible blue investments. Qualifying blue projects must contribute to the sustainable use of oceans and water resources and undergo environmental impact assessments to minimize adverse effects on biodiversity.
Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB, First Abu Dhabi Bank, HSBC, J.P. Morgan and Société Générale CIB were joint lead managers and bookrunners.
The bond follows Masdar's agreement to buy a 550-plus MW Greek solar project from Lightsource bp, as ESG Capital Daily previously reported. Completion of that purchase is expected by the end of this year, pending Greek approval.
Reported by the Transition Finance desk from ESG Today. Published . Corrections