Mubadala’s first-ever green bond order book hits $6bn

Abu Dhabi state fund Mubadala Investment has issued its first-ever green bond for $750 million with a tenor of 10.5 years.

The order book peaked at more than $6 billion with an oversubscription 9.1 times, with robust demand from local, European, Asian, and American investors, state-owned WAM news agency reported. 

“The depth, diversity, and strength of the order book for our first green bond further validate our ability to tap debt markets across economic cycles and in various economic conditions,” Carlos Obeid, chief financial officer of Mubadala Investment Company, said.

The green bond offers a yield of 6.03 percent and coupon at 5.875 percent.  

The transaction saw a large proportion of demand from new investors who had never invested in Mubadala’s bonds.

Receipts will be invested in categories aligned with the green financing network.

A report published by Standard Chartered in April last year concluded that the UAE alone would require $681 billion of investment to finance its transition to a net zero economy, thereby creating a huge business opportunity for local financial institutions.  

The Cop28 climate change conference, hosted by the UAE from November 30 until December 12, is expected to significantly boost interest in green sukuk in the sector’s core markets of the GCC, Malaysia and Turkey.