Abu Dhabi – Mubasher: The Abu Dhabi Future Energy Company (Masdar) has announced the signing of green revolving credit facilities with four local and international banks to boost its current and future eco-friendly investments.
The three-year facilities, the first-of-their-kind in the Middle East, are believed to comprise green features that are compliant with the Loan Market Association’s (LMA) green loan principles (GLPs), Masdar revealed in a statement.
The banks arranging Masdar’s loan are First Abu Dhabi Bank (FAB), 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.
Masdar did not reveal the value of the three-year green loans.
“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,” commented Masdar’s chief financial officer (CFO) Niall Hannigan.
He further revealed that this was the first time Masdar received a corporate-level loan that was separate from its mother company Mubadala, highlighting that the financing would allow the firm to be “more agile and responsive.”
In March, the London-based LMA set out the GLPs to increase the funding for eco-friendly economic activities.
Among Masdar’s key sustainability targets, is the 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, it said in a statement.
“Masdar is continuing to develop as a leader in renewable energy and clean-tech innovation,” Hannigan concluded.
