A banking document revealed today, Tuesday, that Abu Dhabi Future Energy Company (Masdar) is set to raise $750 million from the sale of green bonds for the first time, with demand exceeding $4.2 billion. The document, issued by one of the banks arranging the offering, showed that the company issued the bonds at a spread of 115 basis points above U.S. Treasury bonds, compared to an initial guiding price of approximately 150 basis points above U.S. Treasuries.
Issuers in the hydrocarbon-rich Gulf region are increasingly looking to enhance their credibility in environmental protection through the issuance of green bonds or other sustainability-linked debt instruments. The UAE is set to host the United Nations Climate Change Conference (COP28) next November. Sultan Al Jaber, Chairman of the Abu Dhabi National Oil Company (ADNOC), will preside over COP28. Al Jaber also heads Masdar, serving as its founding CEO.
Last week, the region resumed the sale of debt instruments after a quiet period of about a month, beginning with Dubai Commercial Bank's sale of green bonds, followed by Shoba Realty's issuance of $300 million sukuk in Dubai. Two banks in Abu Dhabi collectively raised $1.25 billion from the sale of traditional bonds and sukuk. Additionally, Saudi Arabia's Dar Al Arkan Real Estate Development Company is expected to raise $600 million from the sale of sukuk today, while Almarai, the Saudi food and beverage company, plans to issue dollar sukuk.
