Abu Dhabi Future Energy Company PJSC, known as Masdar, has initiated the launch of $1 billion in dual tranche no-grow Reg S senior unsecured bonds. These bonds will have tenures of 5 and 10 years, reflecting Masdar’s commitment to financing renewable energy projects.

The issuance is being managed by a group of joint lead managers and bookrunners, including Abu Dhabi Commercial Bank, Bank of China, BNP Paribas, Credit Agricole CIB, DBS Bank Ltd., First Abu Dhabi Bank, IMI-Intesa Sanpaolo, ING, and J.P. Morgan. This move is part of Masdar’s larger $3 billion Euro Medium Term Note Programme.

The bonds consist of a $500 million 5-year bond and a $500 million 10-year bond. The initial price thoughts (IPTs) for the 5-year bond are in the UST+115 basis points area, while the 10-year bond has IPTs in the UST+125 basis points area. Interest payments will be made semi-annually on May 21 and November 21 each year until the bonds reach maturity.

According to the investor document, the net proceeds from these bonds will be used by Masdar to finance and/or refinance specific eligible green projects, as outlined in its Green Finance Framework. Earlier this year, the Abu Dhabi government-owned energy company raised $750 million through its first green bond issuance.

Masdar stands as the only renewable power company in the UAE, boasting a total portfolio of 291 projects that have the capacity to produce 58 gigawatts of energy.