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Mubadala Issues Inaugural $750 Million Green Bond with Strong Market Demand

Mubadala has successfully launched its first-ever Green Bond worth $750 million.

Mubadala has successfully issued its first-ever Green Bond, with a total value of $750 million. 

The bond has a tenor of 10.5 years, a yield of 6.03 percent, and a coupon rate of 5.875 percent.

The issuance received significant interest from the market, with order books surpassing $6 billion. 

The strong demand came from a diverse range of investors, including local, European, Asian, and American accounts.

Exceptional Oversubscription:

The bond issuance was oversubscribed at a remarkable rate of 9.1 times, making it one of the most oversubscribed in 2023.

This transaction served to diversify Mubadala’s investor base by attracting new investors. Most of the demand came from investors who had not previously invested in Mubadala’s bonds.

Responsible Investment:

The proceeds from the Green Bond will be invested in categories aligned with the Green Financing Network, underscoring Mubadala’s commitment to responsible investing. 

This initiative aligns with the company’s focus on sustainability ahead of COP28 later in the year.

Mubadala’s Commitment to Responsible Investing:

Carlos Obeid, Chief Financial Officer of Mubadala Investment Company, emphasized its dedication to responsible investing, a core aspect of its operational model since its inception. 

He highlighted Mubadala’s collaborative efforts with various stakeholders to address global challenges. 

He lauded the strong response to the Green Bond, reinforcing the company’s ability to access debt markets across economic cycles and conditions.

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