Abu Dhabi: - 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.
-Ends-
About Masdar
Abu Dhabi’s renewable energy company, Masdar is advancing the commercialization and deployment of renewable energy, sustainable urban development and clean technologies to address global sustainability challenges. Wholly owned by Mubadala Investment Company, the strategic investment company of the Government of Abu Dhabi, our mandate is to help maintain the UAE’s leadership in the global energy sector, while supporting the diversification of both its economy and energy sources for the benefit of future generations.
About UniCredit
UniCredit is a simple successful pan-European Commercial Bank, with a fully plugged in CIB, delivering a unique Western, Central and Eastern European network to its extensive client franchise: 26 million clients.
UniCredit offers both local and international expertise to its clients, providing them with unparalleled access to leading banks in its 14 core markets through its European banking network: Italy, Germany, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Serbia, Slovakia, Slovenia and Turkey. Leveraging on an international network of representative offices and branches, UniCredit serves clients in another 18 countries worldwide.
About First Abu Dhabi Bank (FAB)
FAB, the UAE’s largest bank and one of the world’s largest and safest institutions, offers an extensive range of tailor-made solutions, and products and services, to provide a customised experience. Through its strategic offerings, it looks to meet the banking needs of customers across the world via its market-leading Corporate and Investment Banking and Personal Banking franchises.
Headquartered in Abu Dhabi in Khalifa Business Park, the bank’s international network spans five continents, providing the global relationships, expertise and financial strength to support local, regional and international businesses seeking to do business at home and abroad.
In line with its commitment to put customers first, to Grow Stronger, FAB will continually invest in people and technology to create the most customer-friendly banking experience, and will support the growth ambitions of its stakeholders across countries in which the bank operates.
To empower its customers and clients to Grow Stronger, FAB initiated a powerful movement, which goes beyond banking. The Grow Stronger movement represents the bank’s promise to support its stakeholders’ goals and growth ambitions, providing ideas, tools and expertise to help them become stronger, today and in the future.
With total assets of AED 692 Billion (USD 188 Billion) as of June-end 2018, FAB is rated Aa3/AA-/AA- by Moody’s, S&P and Fitch, respectively, the strongest combined ratings of any bank in the MENA region. The Bank has been ranked by Global Financeâ as the safest bank in the UAE and the Middle East, 4th in emerging markets, 17th amongst commercial banks worldwide, and 31st in the world. In the Top 1000 World Banks 2018 ranking by The Banker Magazine, FAB ranks #1 in the Middle East and #81 in the World by capital strength. Through a strong, diversified balance sheet, leading efficiency and a solid corporate governance structure in place, FAB is set to drive growth forward.
For further information, visit: www.bankfab.com
About Societe Generale
Societe Generale is one of the leading European financial services groups. Based on a diversified and integrated banking model, the Group combines financial strength and proven expertise in innovation with a strategy of sustainable growth, aiming to be the trusted partner for its clients, committed to the positive transformations of society and the economy.
Active in the real economy for over 150 years, with a solid position in Europe and connected to the rest of the world, Societe Generale has over 147,000 members of staff in 67 countries and supports on a daily basis 31 million individual clients, businesses and institutional investors around the world by offering a wide range of advisory services and tailored financial solutions. The Group is built on three complementary core businesses:
French Retail Banking, which encompasses the Societe Generale, Crédit du Nord and Boursorama brands. Each offers a full range of financial services with omnichannel products at the cutting edge of digital innovation;
International Retail Banking, Insurance and Financial Services to Corporates, with networks in Africa, Russia, Central and Eastern Europe and specialised businesses that are leaders in their markets;
Global Banking and Investor Solutions, which offers recognised expertise, key international locations and integrated solutions.
Societe Generale is included in the principal socially responsible investment indices: DJSI (World and Europe), FTSE4Good (Global and Europe), Euronext Vigeo (World, Europe and Eurozone), four of the STOXX ESG Leaders indices, and the MSCI Low Carbon Leaders Index.
For more information, you can follow us on twitter @societegenerale or visit our website www.societegenerale.com
About SMBC
SMBC is a top tier Japanese Bank, which is rated A1/P-1 by Moody’s, A/A-1 by S&P and A/F1 by Fitch, with an established global presence across 39 countries and regions. For more information, visit www.smbcgroup.com
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
