Masdar Touts Industrial-Scale Green Finance Deployment as Global Leader
Mazin Khan, chief financial officer of Masdar, UAE's leading renewable energy company, has declared that the firm is pioneering "industrial-scale" deployment of green finance, setting global standards in this critical area. Speaking at the World Future Energy Summit in Abu Dhabi, Khan outlined three key sources of capital: internal reserves, non-recourse project financing, and green bonds.
The past three years have seen Masdar issue nearly $3 billion worth of green bonds, with its latest issuance in May raising a significant $1 billion. This was oversubscribed by a peak orderbook of $6.6 billion from regional and international investors, including dedicated green funds. The firm has issued green bonds totalling $2.5 billion over the past two years.
Khan emphasized that green bonds are vital to achieving Masdar's ambition of 100 GW in renewable energy portfolio capacity by 2030. The company has already surpassed its initial 10 GW target, reaching 65 GW in under five years. Khan views the exponential growth rate as a key factor, and green bonds will play a crucial role in sustaining this momentum.
The green bond market has matured significantly over the past decade, with 100-year bonds no longer unusual. However, Masdar is actively differentiating itself by highlighting its devised in-house Green Finance Framework, which guarantees that every dollar raised goes towards funding new renewable energy projects, not existing ones on its portfolio.
This framework sets Masdar apart from other issuers of green paper and makes it an attractive investment opportunity for reducing greenhouse gases and carbon emissions. By marketing these bonds as "dark green bonds," Masdar provides investors with complete transparency and confidence about their money's allocation.
The firm's Framework has expanded eligibility criteria to include green hydrogen and standalone battery storage projects, further enhancing its commitment to sustainable change. The success of this approach is evident in the oversubscription of its latest issuance, a testament to investor faith in Masdar's capabilities.
Mazin Khan, chief financial officer of Masdar, UAE's leading renewable energy company, has declared that the firm is pioneering "industrial-scale" deployment of green finance, setting global standards in this critical area. Speaking at the World Future Energy Summit in Abu Dhabi, Khan outlined three key sources of capital: internal reserves, non-recourse project financing, and green bonds.
The past three years have seen Masdar issue nearly $3 billion worth of green bonds, with its latest issuance in May raising a significant $1 billion. This was oversubscribed by a peak orderbook of $6.6 billion from regional and international investors, including dedicated green funds. The firm has issued green bonds totalling $2.5 billion over the past two years.
Khan emphasized that green bonds are vital to achieving Masdar's ambition of 100 GW in renewable energy portfolio capacity by 2030. The company has already surpassed its initial 10 GW target, reaching 65 GW in under five years. Khan views the exponential growth rate as a key factor, and green bonds will play a crucial role in sustaining this momentum.
The green bond market has matured significantly over the past decade, with 100-year bonds no longer unusual. However, Masdar is actively differentiating itself by highlighting its devised in-house Green Finance Framework, which guarantees that every dollar raised goes towards funding new renewable energy projects, not existing ones on its portfolio.
This framework sets Masdar apart from other issuers of green paper and makes it an attractive investment opportunity for reducing greenhouse gases and carbon emissions. By marketing these bonds as "dark green bonds," Masdar provides investors with complete transparency and confidence about their money's allocation.
The firm's Framework has expanded eligibility criteria to include green hydrogen and standalone battery storage projects, further enhancing its commitment to sustainable change. The success of this approach is evident in the oversubscription of its latest issuance, a testament to investor faith in Masdar's capabilities.