Masdar has published its inaugural Green Finance Framework (GFF) with a Sustainability Quality Score of SQS1 (Excellent) – the highest rating – from Moody’s Investors Service, its Second Party Opinion provider. This independent assessment is expected to make Masdar’s planned bond offering more attractive to debt capital market investors.
The rating reflects best-in-class alignment with the four components of the Green Bond Principles (GBP) and a high expected contribution to sustainability. Masdar will now be in a position to issue green bonds in connection with the GFF, with the proceeds being closely tracked, and the environmental benefits of projects being accurately measured, demonstrating a high degree of transparency and disclosure to the investor community.
Masdar is planning to issue its first green bond in 2023, its Chief Executive Officer, Mohamed Jameel Al Ramahi, announced in January at the Abu Dhabi Sustainable Finance Forum.
“Our Green Finance Framework will guide all future issuances in the loan and debt capital markets, in line with best practices in the sustainable finance industry,” said Niall Hannigan, Chief Financial Officer, Masdar.
Masdar launched its GFF to provide investors and stakeholders with information regarding its commitment to allocate the proceeds of green bonds, loans and other financial instruments in a manner consistent with the highest ESG standards. The GFF, which is available on Masdar’s website, will serve as a reference for any and all green financial instruments including bonds, loans, private placements, and sukuk that Masdar raises to fund investments in projects at home and overseas.