Abu Dhabi Securities Exchange welcomes secondary listing of $750m Green Bond
- Last updated: October 10, 2023 | 19:13
Abu Dhabi Securities Exchange (ADX) welcomed the secondary listing of a $750 million Green Bond by Abu Dhabi Future Energy Company (Masdar), the global clean energy powerhouse based in Abu Dhabi.
The ten-year bond, which was 5.6 times oversubscribed, carries a 4.875 per cent coupon rate and will mature in July 2033. It aims to fund new clean energy projects. The issuance was assigned an A2 rating by Moody’s and A+ by Fitch.
Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar, said: “Masdar is proud to be listing our first Green Bond on ADX in the UAE’s capital city of Abu Dhabi where Masdar was first established in 2006. With the proceeds of this bond issuance being used predominantly to finance new greenfield renewable projects in developing countries, this initiative is advancing our global investment in developing and emerging economies where it is needed most. Ahead of COP28, Masdar’s Green Bond bridges the financing gap between the Global North and the Global South, meeting a critical need for an equitable and inclusive energy transition.”
Commenting on the listing, Hisham Khalid Malak, Chairman of ADX, said: “We are excited to support Masdar in their first green bond listing and expand our platform to provide investors with a wider range of asset classes. As the demand for diversified income streams continues to grow, this addition strengthens our role as a catalyst for growth and a driver of sustainable investment.”
He added, “By offering access to companies with strong green strategies, we are proud to contribute to the UAE’s goal of achieving net-zero emissions by 2050. This national drive aligns with our commitment to supporting sustainable projects and helping investors find opportunities that align with their sustainability goals”
In the lead-up to COP 28 in the UAE, ADX has seen an increase in the number of green bonds listed this year. This comes as part of issuers’ efforts to deploy capital towards sustainable and clean energy projects.
Last month, ADX welcomed the Abu Dhabi National Energy Company (TAQA) secondary listing of dual-tranche bonds valued at $1.5 billion on ADX, and earlier in 2023, Sweihan PV Power Company made a secondary bond listing of US$700 million green bonds,
In its aim to support the growth of the UAE’s dynamic and diversified economy and reinforce Abu Dhabi’s positioning as an international market, ADX remains committed to promoting best practices and fortifying its footprint in a thriving financial ecosystem.
Abu Dhabi Securities Exchange. The Abu Dhabi Securities Exchange (ADX) was established on November 15, 2000, by Local Law No. (3) Of 2000, the provisions of which vest the market with a legal entity of autonomous status, independent finance and management. The Law also provides ADX with the necessary supervisory and executive powers to exercise its functions. On March 17, 2020, ADX was converted from a “Public Entity” to a “Public Joint Stock Company PJSC” pursuant to law No. (8) of 2020. ADX is part of ADQ, one of the region’s largest holding companies with a broad portfolio of major enterprises spanning key sectors of Abu Dhabi’s diversified economy.
ADX is a market for trading securities; including shares issued by public joint stock companies, bonds issued by governments or corporations, exchange traded funds, and any other financial instruments approved by the UAE Securities and Commodities Authority (SCA). ADX is the second largest market in the Arab region and its strategy of providing stable financial performance with diversified sources of incomes is aligned with the guiding principles of the UAE “Towards the next 50” agenda. The national plan charts out the UAE’s strategic development scheme which aims to build a sustainable, diversified and high value-added economy that positively contributes to transition to a new global sustainable development paradigm.
Abu Dhabi Future Energy Company (Masdar) is the UAE’s clean energy champion and one of the largest companies of its kind in the world, advancing the development and deployment of renewable energy and green hydrogen technologies to address global sustainability challenges. Established in 2006, Masdar is today active in over 40 countries, helping them to achieve their clean energy objectives and advance sustainable development. Masdar is jointly owned by Abu Dhabi National Oil Company (ADNOC), Mubadala Investment Company (Mubadala), and Abu Dhabi National Energy Company (TAQA), and under this ownership the company is targeting a renewable energy portfolio capacity of at least 100 gigawatts (GW) by 2030 and an annual green hydrogen production capacity of up to 1 million tonnes by the same year.
In the lead-up to COP 28 in the UAE, ADX has seen an increase in the number of green bonds listed this year. This comes as part of issuers’ efforts to deploy capital towards sustainable and clean energy projects.