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Masdar, Abu Dhabi Future Energy Company, has signed a green revolving credit facility (RCF) with four local and international banks to provide funding for new and ongoing investments in its global clean technology and sustainable real estate projects.
The facility, which is the first green RCF in the Middle East, has been arranged with the UAE’s First Abu Dhabi Bank, Societe Generale Corporate & Investment Banking, Japanese multinational banking and financial services company Sumitomo Mitsui Banking Corporation, and pan-European global banking and financial services group UniCredit - together the mandated lead arranger (MLA) and bookrunners – as part of their ongoing commitment to sustainable finance.
The three-year facility includes a number of ‘green features’ which are consistent with the Loan Market Association’s Green Loan Principles (GLP), a set of guidelines designed to support environmentally sustainable economic activity. The GLPs were launched in the UK earlier this year in a move to standardise environmentally friendly lending and establish a framework for green lending across global markets.
Masdar, a subsidiary of Mubadala Investment Company, is committed to report on an annual basis its performance against a set of key sustainability targets, which include displacement of carbon dioxide emissions (CO2e), electricity generation from renewable energy sources (including solar, wind and other recognised clean energy technologies), and levels of ‘embodied carbon’, which refers to the amount of carbon dioxide emitted during the manufacture, transport and construction of building materials.
Niall Hannigan, Chief Financial Officer, Masdar, said: “Our new green facility provides liquidity for general corporate purposes and shows that Masdar is establishing greater independence and greater financial discipline in line with its growth strategy. This is the first time we have secured borrowing at the corporate level, separately from Mubadala, and allows us to be more agile and responsive.”
“Masdar is continuing to develop as a leader in renewable energy and clean-tech innovation,” Hannigan added. “This is the first facility of its kind in the region, and we are very pleased by the show of support from the banks for our ambitious growth plans.”
Andy Cairns, Senior Managing Director and Head of Global Corporate Finance, First Abu Dhabi Bank (FAB), said: “FAB is delighted to arrange this innovative loan facility which evidences Masdar’s leading position in green and sustainable financing”.
Masdar is also expected to secure bank guarantee facilities with a number of other regional and international banks in the near future, which will represent another important step towards ensuring liquidity is available to finance its growing portfolio of investments.
Zulfiqar Khan, Senior Banker and Head of Corporate Coverage for the Middle East, Dubai and UAE at Societe Generale Corporate & Investment Banking, said: “We are thrilled to accompany Masdar on this historic transaction. It is a continuation of our strong support for Masdar and of Societe Generale Group’s ongoing efforts to support clients committed to environmental and social values as well as a long-term and ambitious CSR strategy.”
“We are very proud to make our expertise in structured finance and green loans available to Masdar with this first green revolving facility,” said Pietro Pasqualucci, Head of Corporate & Investment Banking MEA Region at UniCredit. “One year since the inauguration of our Abu Dhabi branch, acting as a hub for the Gulf Cooperation Council as well as the wider Middle East and Africa region, we are constantly increasing our support either to European clients or to local clients, including regional multinationals, local financial institutions and Sovereign Wealth Funds.”
Masdar has been advancing the commercialisation and deployment of renewable energy, sustainable urban development and clean technologies to address global sustainability challenges since 2006, and is currently active in more than 20 countries.
It has developed some of the world’s largest solar and wind energy projects, including Shams 1, the world’s largest concentrated solar power plant at the time of its completion in 2013; London Array, one of the world’s largest offshore wind farms, Dudgeon offshore wind farm in the UK, and Shua’a 2, one of the world’s largest solar PV plants now under development in Dubai.
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