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• Investment highlights Masdar’s long-term commitment to and confidence in the U.S. renewable energy market

• Masdar to help accelerate Terra-Gen’s growth as a leading developer and operator of utility-scale clean energy projects

• Strategic investment advances Masdar’s ambitious plans in the growing U.S. market

Abu Dhabi Future Energy Company PJSC – Masdar (“Masdar”), the United Arab Emirates’ clean energy powerhouse, today announced that it has signed a definitive agreement to acquire a 50 percent stake in Terra-Gen Power Holdings II, LLC (“Terra-Gen”), one of the largest independent renewable energy power producers in the United States, from Energy Capital Partners (“ECP”). 

ECP, a leading investor across energy transition, electrification and decarbonization infrastructure assets, will fully exit its position in Terra-Gen in connection with the transaction. Igneo Infrastructure Partners (“Igneo”), a global infrastructure investment manager, will retain its existing 50 percent stake in the company. Igneo made its initial investment in Terra-Gen in December 2020.

Established in 2007, Terra-Gen is a leading independent provider of end-to-end renewable project development, financing and operating capabilities. Terra-Gen has a proven track record of developing, owning and operating assets across a large and diverse set of renewable technologies in the most attractive markets for renewables and storage in the U.S. Terra-Gen currently operates approximately 2.4 GW of wind and solar, and 5.1 GWh of energy storage facilities across 32 renewable power sites throughout the U.S., predominantly in California and Texas. This transaction will position Terra-Gen to continue building on the significant growth and transformation realized under ECP’s ownership and achieve accelerated long-term success as part of Masdar’s and Igneo’s portfolios.

Masdar’s 18-year history of funding, developing, owning and operating clean energy projects around the world will support Terra-Gen’s ambitions to grow its renewable capacity and portfolio in the U.S. One of the world’s fastest-growing clean energy companies, UAE-based Masdar first invested in the U.S. energy market in 2019. Its U.S. portfolio of utility scale wind, solar and storage assets has a generating capacity of more than 1.4 GW.  The U.S. market will play an important role as Masdar executes its plan to build a global renewable energy portfolio of at least 100 GW capacity by 2030, and this proposed transaction represents another significant milestone towards that goal.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said,

Philip Haddad, President and CEO of Masdar Americas, said,

Jim Pagano, CEO of Terra-Gen, said,

Terra-Gen was originally acquired by ECP in 2015, and under its ownership, Terra-Gen more than tripled its portfolio of operating renewable assets. Under Igneo and ECP, since 2020, Terra-Gen has added over 1 GW of generating capacity and 5 GWh of storage, expanded its pipeline of wind, solar and battery storage projects and enjoyed sustained growth.

Schuyler Coppedge, Partner at ECP, said,

John DiMarco, Managing Director at Igneo, said,

The transaction is expected to close by the end of 2024, subject to regulatory and other customary approvals.

Lazard and Guggenheim Securities are serving as financial advisors and Latham & Watkins LLP is serving as legal advisor to Terra-Gen. BMO Capital Markets and JP Morgan are serving as financial advisors and White & Case LLP and Covington & Burling LLP are serving as legal advisors to Masdar. Mayer Brown is serving as legal advisor to Igneo.

• Masdar, the UAE’s clean energy powerhouse, to acquire 49 percent stake in RWE’s 3GW Dogger Bank South (DBS) offshore wind projects, as part of £11billion investment in UK’s renewables sector

• One of world’s largest offshore wind development projects, DBS is set to power up to 3 million British homes, boost the UK economy and create thousands of jobs

• Deal signed during COP28 in UAE shows commitment of Masdar, whose Chairman is also COP28 President, to invest in accelerating net zero in UK and Europe by harnessing region’s huge offshore wind potential

Abu Dhabi Future Energy Company PJSC – Masdar, the UAE’s clean energy powerhouse, is part of an £11billion investment into the UK’s renewable energy sector and is purchasing a 49 percent stake in RWE’s 3 gigawatt (GW) Dogger Bank South (DBS) projects - which form one of the world’s largest planned offshore wind farms. DBS is capable of powering millions of British homes, reducing emissions and creating up to 3,000 jobs. Closing of the transaction is subject to customary approvals and expected in the first quarter of 2024.

The agreement was signed on the sidelines of the UN’s climate change conference COP28, in the UAE. The £11billion joint investment will provide a huge boost to the UK economy and demonstrates the UAE’s long-term commitment to supporting net-zero goals in Britain and around the world. It builds on the £10 billion UAE-UK Sovereign Investment Partnership (UK-UAE SIP) to invest in technology, infrastructure and the energy transition.

The 3GW DBS projects bring together global clean energy pioneers Masdar and RWE, a leading renewable energy company headquartered in Germany. The mega-facility is expected to generate enough energy to power 3 million typical UK homes. The projects are predicted to create 2,000 jobs during construction and more than 1,000 direct and indirect jobs during their operational phase.

Masdar Chief Executive Officer, Mohamed Jameel Al Ramahi, and the Chief Executive Officer of RWE, Dr Markus Krebber, signed the agreement at COP28 in Expo City Dubai, on December 1.

Located over 100 kilometers off the northeastern coast of England, the DBS offshore wind farms will be split across two sites, the DBS East Array and the DBS West Array. Each site will have the capacity for 1.5GW and span 500 square kilometers. Masdar will acquire a 49% stake in the landmark renewables project while RWE, with a 51% share, will remain in charge of development, construction and operation throughout the life cycle of the projects.

The construction phase could start as early as end 2025 and the first 800MW of electricity is planned to come online in 2029. The DBS projects are expected to be fully commissioned by end of 2031.

HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Chairman of Masdar and COP28 President, said:

Masdar’s Chief Executive Officer, Mohamed Jameel Al Ramahi, said:

The deal demonstrates Masdar’s long-standing commitment to advancing offshore wind projects in the UK and Europe. A decade ago, Masdar, RWE and its partners launched the 630MW London Array wind farm, the world’s largest at the time. Today’s investment in the 3GW DBS projects - almost five times as big as London Array - shows Masdar’s steadfast expansion into the exciting offshore wind sector. Masdar has also invested in the 30MW Hywind project, which was the world’s first floating offshore wind farm, and the 402MW Dudgeon offshore wind farm. In July, Masdar invested in the 476MW Baltic Eagle offshore wind farm set to power 475,000 homes. The company’s Global Offshore Wind division is based in London and Masdar is pursuing a strategy of investing and developing projects at the early stages to further strengthen its expertise as an offshore wind developer.

Markus Krebber, CEO RWE AG:

Offshore wind energy could generate 380GW by 2030, provided investment is increased and permitting protocols are accelerated, according to the International Renewable Energy Agency. With the UK and Europe setting ambitious legally binding net-zero goals, Masdar will continue to harness opportunities to develop the region’s burgeoning wind energy sector.

RWE is leading the way to a green energy world. Between 2024 and 2030, RWE will invest 55 billion euros worldwide in offshore and onshore wind, solar energy, batteries, flexible generation, and hydrogen projects. By the end of the decade, the company's green portfolio will grow to more than 65 gigawatts of generation capacity, which will be perfectly complemented by global energy trading. RWE is decarbonizing its business in line with the 1.5-degree reduction pathway and will phase out coal by 2030. RWE will be net zero by 2040.

RWE is already one of the leading companies in the field of renewable energy and offshore wind. Its unparalleled expertise over the last 20 years has resulted in 19 offshore wind farms in operation, with a goal to grow its global offshore wind capacity from 3.3GW today to 10GW in 2030.

Abu Dhabi Securities Exchange (ADX) Welcomes the Secondary Green Bond Listing by Masdar

Abu Dhabi Securities Exchange (ADX) welcomed the secondary listing of a USD 750 million Green Bond by Abu Dhabi Future Energy Company (Masdar), the global clean energy powerhouse based in Abu Dhabi.

The ten-year bond, which was 5.6 times oversubscribed, carries a 4.875 per cent coupon rate and will mature in July 2033. It aims to fund new clean energy projects. The issuance was assigned an A2 rating by Moody’s and A+ by Fitch.

HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President-Designate and Chairman of Masdar, said:

Commenting on the listing, Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, said:

In the lead-up to COP 28 in the UAE, ADX has seen an increase in the number of green bonds listed this year. This comes as part of issuers’ efforts to deploy capital towards sustainable and clean energy projects.

Last month, ADX welcomed the Abu Dhabi National Energy Company (TAQA) secondary listing of dual-tranche bonds valued at $1.5 billion on ADX, and earlier in 2023, Sweihan PV Power Company made a secondary bond listing of US$700 million green bonds,

In its aim to support the growth of the UAE's dynamic and diversified economy and reinforce Abu Dhabi’s positioning as an international market, ADX remains committed to promoting best practices and fortifying its footprint in a thriving financial ecosystem.

• Investment in Indonesian-based Pertamina Geothermal Energy marks Masdar’s entry into geothermal energy
• Increases Masdar’s footprint in the Asia-Pacific region and gives company access to second-largest geothermal market in the world
• Geothermal is a stable, dispatchable, clean renewable resource, which helps to balance intermittency of wind and solar

Masdar, a global clean energy powerhouse, is entering the geothermal energy sector, through a strategic investment in Pertamina Geothermal Energy (PGE), one of the world’s largest geothermal players.

The investment marks Masdar’s entry into geothermal energy, in the second-largest geothermal market in the world. 

HE Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and Chairman, Masdar, said, “Achieving the 1.5C target set out in the Paris Accords will require humanity to leverage all sources of low-carbon energy, including sources that are currently under-utilized, like geothermal. Through its investment in PGE, Masdar is demonstrating its continuing commitment to Indonesia’s energy transition and its support of one of the major focus areas of the upcoming COP28, which is to provide practical energy security solutions while reducing emissions.”

Ahmad Yuniarto, Chief Executive Officer, PGE, said, “We look forward to working with Masdar in the areas which complement and grow further our capabilities to be a world class green energy company, with the largest geothermal capacity globally. We endeavor to develop 600 megawatts (MW) in additional installed capacity over the next five years to support Indonesia’s renewable energy mix.”

Mohamed Jameel Al Ramahi, Chief Executive Officer, Masdar, said, “Masdar’s strategic investment in PGE will complement our already strong footprint in Indonesia, the world’s second largest geothermal market. We are especially excited to add geothermal energy to our clean energy portfolio, a clean energy source that can deliver dispatchable power 24 hours a day, which further underscores our position as a global leader in delivering clean energy solutions that help drive the global energy transition.”

Indonesia has a goal of increasing its installed geothermal capacity from 2.8 gigawatts (GW) in 2022 to 6.2 GW by 2030. The Government is targeting net-zero emissions by 2060 and having renewables provide 23 percent of the energy mix by 2023. 

PGE has been operating geothermal facilities in Indonesia for the last 40 years, with a portfolio capacity exceeding 1.87 GW. 

Geothermal energy harnesses the heat generated within the Earth’s core to provide a constant energy source, unlike solar or wind, which are intermittent in nature. Geothermal energy plants also have high-capacity factors, meaning they can run at maximum power for longer periods. These attributes mean geothermal energy could potentially play a significant role in the clean energy transition, helping nations with a high concentration of geothermal activity to reduce carbon emissions.   

The PGE investment is the latest in Masdar’s ongoing effort to expand and increase its strategic partnerships in the Asia-Pacific region. Masdar is already developing the region’s largest floating solar facility – the 145-MW Cirata Floating Solar PV Plant in Indonesia – and last year signed an agreement with Tuas Power, EDF Renewables, and PT Indonesia Power to explore development of up to 1.2 GW solar capacity in Indonesia for export to Singapore. 

Masdar recently announced a new shareholding structure and additional focus on green hydrogen, making it one of the largest clean energy companies of its kind. With a goal of achieving 100 GW renewable energy capacity and green hydrogen production of 1 million tonnes per annum annually by 2030, the new Masdar is a clean energy powerhouse that will spearhead the UAE’s Net Zero by 2050 Strategic Initiative and drive the global energy transition.

His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the United Arab Emirates Armed Forces, today announced a global clean energy powerhouse intended to spearhead the drive to net-zero carbon by 2050. Consolidating their combined efforts in renewable energy and green hydrogen, Abu Dhabi National Energy Company PJSC (TAQA), Mubadala Investment Company (Mubadala) and Abu Dhabi National Oil Company (ADNOC) will partner under the Abu Dhabi Future Energy Company (Masdar) brand. 

The agreement signing, in the UAE Pavilion at EXPO 2020, was witnessed by His Highness Sheikh Mohamed bin Zayed, along with His Highness Sheikh Hazza bin Zayed; His Highness Sheikh Mansour bin Zayed; His Highness Sheikh Khaled bin Mohamed bin Zayed; and His Highness Sheikh Theyab bin Mohamed bin Zayed. Signatories were His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of Industry and Advanced Technology and ADNOC Managing Director and Group CEO; His Excellency Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO of Mubadala; and His Excellency Mohamed Hassan Alsuwaidi, CEO of ADQ and Chairman of TAQA.

The partnership between three Abu Dhabi champions will have a combined current, committed, and exclusive capacity of over 23 Gigawatts (GW) of renewable energy, with the expectation of reaching well over 50GW total capacity by 2030. Upon completion of this transaction, the expanded Masdar entity will become one of the largest clean energy companies of its kind and be well positioned to lead the industry on a global scale.

Today’s announcement consolidates the efforts of all three partners, combining their renewable energy and green hydrogen portfolios into Masdar, leveraging the existing clean energy pioneer’s strong international legacy and brand identity. The new Masdar partnership builds on the creation in January 2021 of the Abu Dhabi Hydrogen Alliance, comprised of Mubadala, ADNOC and ADQ (TAQA’s majority shareholder) and the launch on November 17, 2021 of a new global renewable energy venture between ADNOC and TAQA. Collectively, the partners will supercharge Masdar’s growth and expansion, with each shareholder playing a key role.

As the United Arab Emirates (UAE) prepares to host COP28 in 2023, this strategic partnership positions Abu Dhabi and the UAE at the forefront of the energy transition. The powerful new combination will further drive de-carbonization of power across local and international markets, while accelerating the UAE’s path towards net-zero carbon by 2050 and cementing its leading global role in green hydrogen.

H.H. Sheikh Mohamed bin Zayed highlighted how the UAE is embracing the energy transition as it advances pragmatic and innovative solutions to secure a lower carbon future, paving the way for the nation to deliver on its ‘Net-Zero by 2050 Strategic Initiative’.

H.E. Dr. Sultan Al Jaber commented: “As the UAE celebrates its Jubilee, today’s historic collaboration between three Abu Dhabi powerhouses firmly places ADNOC at the forefront of the global energy transition and marks our entry into the international clean energy space. Through our direct interest in Masdar, and in close collaboration with our partners, ADNOC will further capitalize on the many exciting local and international renewable energy and hydrogen opportunities.

“Since our nation’s wise leadership founded Masdar 15 years ago, the company has established itself as a global pioneer across the clean energy and sustainability landscape. This bold and forward-looking strategic partnership, will bolster Masdar’s position both locally and globally, and is yet another example of how ADNOC has successfully developed a national and international partnership model, through smart, creative and innovative approaches that are creating additional value and driving sustainable growth for Abu Dhabi and the UAE.”

As an early pioneer in the emerging market for hydrogen and its carrier fuels, ADNOC has ambitious plans to grow domestic and international hydrogen value chains, leveraging its trading capabilities, existing infrastructure and logistics. 

H.E. Khaldoon Khalifa Al Mubarak, Managing Director and Group CEO, Mubadala Investment Company, said: “Today marks the start of a new chapter for our clean energy champion, Masdar. Fifteen years ago, Mubadala established Masdar out of our conviction that innovation can drive sustainable economic growth while safeguarding the future of the planet. Masdar is a true ‘Made-in-the-UAE’ success story that reflects our long-term strategy.”

“Responding to the mounting challenges of a changing climate requires that we continue to look for innovative ways to create clean energy.  With partnerships at the heart of Mubadala’s investment philosophy, this joint venture with Abu Dhabi’s energy leaders supports the UAE’s vision as a global leader in climate action. We look forward to working with ADNOC and TAQA to support Masdar’s continued growth and the company’s journey in finding new solutions to our climate challenges.” 

H.E. Mohamed Alsuwaidi CEO of ADQ and Chairman of TAQA said: “TAQA’s strategy is to be a champion of low carbon power and water. By taking a controlling stake in Masdar’s renewable energy business and working in partnership with ADNOC and Mubadala we have created a path to grow to over 50GW of renewable capacity by 2030 making us the largest player in the MENA region and one of the leading global contributors to renewable power generation. This clean power capability and the opportunity to tap into the expertise in this partnership will also enable us to become a world leader in green hydrogen. We will be a true national champion for the UAE in developing clean energy solutions at home and around the world.”

The new partnership envisions a comprehensive focus on two key areas: renewable energy, and green hydrogen. H.E. Dr. Sultan Al Jaber will remain Chairman of the expanded Masdar entity that will cover both renewables and green hydrogen business areas. 

It is planned that TAQA will take the leading role with a 43% shareholding in Masdar’s renewable energy business with Mubadala retaining 33% and ADNOC holding 24%. Meanwhile, ADNOC will take the leading role with a 43% shareholding in Masdar’s green hydrogen business, with Mubadala holding 33% and TAQA 24% respectively.

The partnership envisages parties entering into detailed agreements as well as completion of necessary transaction requirements, including obtaining relevant third party and regulatory approvals.

Mubadala established Masdar in 2006 to extend the UAE’s leadership role in the global energy sector, while helping to drive the nation’s economic diversification and climate action agenda. Today, the company is active in more than 35 countries across six continents and has developed and invested in projects worldwide worth nearly $20 billion. Masdar City, Abu Dhabi’s flagship sustainable urban development, will continue to remain under Mubadala’s ownership.

Moody’s Investor Services and Fitch Ratings have assigned Masdar first-time credit ratings that place it firmly in the investment grade category – a significant milestone for the company.

Moody’s and Fitch, two of the leading agencies that evaluate the creditworthiness of commercial and sovereign entities, issued long-term ratings of A2 and A+ respectively, both with a stable outlook, following extensive due diligence in accordance with their global ratings standards.

Masdar’s status as a Government Related Entity (GRE) of the Government of Abu Dhabi, itself rated Aa2 by Moody’s and AA by Fitch, and the company’s status as a subsidiary of Mubadala Investment Company and Mamoura Diversified Global Holding PJSC, were key drivers in determining the ratings.

While Masdar has no concrete plans to raise capital, the credit ratings will provide the company with a solid platform to access capital markets, providing greater flexibility for financing of and investment in new projects at competitive rates as it accelerates its global expansion. Masdar is already committed to renewable energy projects across more than 30 countries, with a combined value of US$20 billion and a generation capacity nearing 13 GW.

In setting the rankings, the agencies highlighted Masdar’s extensive track record and sector expertise, in addition to its very low exposure and reliance on external debt, supported by strong backing from Mubadala and the government of Abu Dhabi.

Musabbeh Al Kaabi, Chief Executive Officer of the UAE Investments at Mubadala, said: “The A2 and A+ ratings from Moody’s and Fitch are a reflection of Masdar’s robust portfolio of renewable energy and sustainable real estate assets and its crucial role in the diversification of the Abu Dhabi economy. The ratings demonstrate the strength of Masdar’s position as a global player in the sustainable development sector and validate the futuristic ambitions that started 15 years ago when Mubadala first incubated Masdar as the UAE’s renewable energy and sustainable urban development arm.”

When assessing the company’s main revenue drivers, the ratings agencies made the link between Masdar City, the company’s flagship sustainable urban development project, and increasing global appetite for sustainable real estate developments, with the added advantage of Masdar being a freezone located strategically between Europe and Asia. They also analysed Masdar’s second primary revenue source, its investments in global clean-energy projects, with the global surge in awareness on climate action increasing demand for energy-transition investments and providing solid long-term growth opportunities for the company.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said: “The award of these investment grade credit ratings marks a key milestone in Masdar’s development journey. The ratings are a strong endorsement of Masdar’s financial stability and the creditworthiness of our core business model, and reflect confidence in Masdar’s cash generation ability, unrestricted liquidity and future growth prospects as an Abu Dhabi-based company. As we progress on our global expansion journey, we recognize the importance of transparency and good governance and our first-time ratings are testament to those values.”

Masdar, one of the world’s leading renewable energy companies, and Taaleri Energia, which invests in utility-scale wind and solar assets, have agreed to develop a 65-megawatt (MW) solar photovoltaic (PV) project in Greece. The project will be managed through the companies’ joint venture Masdar-Taaleri Generation (MTG).

The co-development was announced at a virtual signing ceremony, attended by His Excellency Dionyssios Zois, Ambassador of the Hellenic Republic to the UAE, and His Excellency Sulaiman Hamed Salem AlMazroui, Ambassador of the United Arab Emirates to the Hellenic Republic. 

The project is Masdar’s first investment in the Greek market and will be developed by MTG alongside local partners, the Constantakopoulos family and Autohellas. 
“We are extremely pleased for today’s virtual signing of the agreement between two prominent Greek business groups, the Constantakopoulos family and Autohellas, and the joint venture between Masdar, the UAE’s renewable energy leader, and Finland’s Taaleri Energia, a prominent international player in clean energy, with the purpose of establishing a solar photovoltaic project in Greece,” said His Excellency Zois. 

“We congratulate all the business groups involved and specifically Masdar on their very first investment in the Greek renewable energy sector and we hope that this agreement will pave the way for additional Emirati investments in Greece, either from Masdar or other UAE entities,” he added. 

“Today’s signing is a milestone occasion that will enhance the longstanding cooperation between Greece and the United Arab Emirates. We are pleased to support the country’s climate change efforts and contribute to their goal of producing 35 percent of their energy mix from renewables by 2030. We look forward to strengthening our relationship further by expanding our bilateral collaboration in the near future,” said His Excellency AlMazroui. 

The project is located in the region of Viotia, approximately 65 kilometers north of the Greek capital, Athens, and is in the advanced development stage, with construction expected to be completed in 2023. It is intended that the project will participate in Greece’s feed-in-tariff premium auction scheme in late 2021. 

“As we celebrate our fifteenth anniversary in the renewable energy sector, Masdar is proud to be expanding its global presence by making its first investment in Greece. We look forward to working with our partners and leveraging our international expertise in clean energy projects to support the diversification of the country’s energy mix, while advancing our common climate change mitigation goals,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar.    

“This is a high quality solar PV development project in one of the Taaleri SolarWind II fund’s key markets for solar investments and further demonstrates the value of our joint venture and cooperation with Masdar,” said Kai Rintala, Managing Director of Taaleri Energia. 

When complete, the solar PV plant will produce over 100 gigawatt-hours (GWh) of electricity annually. 

“We are proud to be part of this multi-stakeholder venture for the development of a significant photovoltaic project in our country, and to join reputable groups which are leaders in their respective fields. Together, we can contribute to Greece’s and to our group’s sustainability targets, in maximizing the use of renewable energy,” said Achilles V. Constantakopoulos.

According to Greece’s National Energy and Climate Plan (NECP), the country aims to produce 35 percent of its energy from renewable sources by 2030. The plan also targets production of over 60 percent of the country’s electricity consumption through renewables by the same year, doubling its current contribution. 

“Autohellas is honored to be making its first investment in the renewable energy sector alongside reputable, international and local partners with significant expertise in developing solar photovoltaic projects,” said Eftichios Vassilakis, Chief Executive Officer of Autohellas. 

The Masdar-Taaleri JV, MTG, was announced at Abu Dhabi Sustainability Week 2019, and is a development vehicle for renewable energy projects in Central and South Eastern Europe. 
Masdar and funds managed by Taaleri Energia are co-investment partners in the 158 MW Čibuk 1 wind farm in Serbia, and recently acquired an equal share in two ready-to-build wind farms in Poland, the 37.4 MW Mlawa Wind Farm and the 14 MW Grajewo Wind Farm.  

In the Middle East, the two companies have jointly invested in the development and construction of the Baynouna Solar Energy Project, a 200 MW solar PV plant in Jordan, the largest single-site solar PV project in the country.

• Sustainable real estate investment trust (REIT) established at Abu Dhabi Global Market under the first private REIT regime in MENA
• The Masdar Green REIT has received approval to commence activities from ADGM’s Financial Services Regulatory Authority (FSRA)

Abu Dhabi, United Arab Emirates; 20 January 2021: Masdar, a subsidiary of Mubadala Investment Company and a pioneer in sustainable urban development, has partnered with Emirates NBD Asset Management to receive management services for the UAE’s first sustainable real estate investment trust – the Masdar Green REIT. Together, Masdar Capital Management (a recently established FSRA Regulated Fund Manager) and Emirates NBD Asset Management bring significant experience and expertise in sustainable real estate and property asset management to the partnership. 

Masdar announced it was launching the REIT, the first in the UAE to invest solely in sustainable real estate projects, during Abu Dhabi Sustainability Week (ADSW) in January last year. The Masdar Green REIT has been established at Abu Dhabi Global Market (ADGM) as a Qualified Investor Fund (QIF) and offers an attractive opportunity for professional investors through private placement to invest in a unique portfolio of stable, income-producing sustainable real estate assets. Masdar also confirmed that the REIT has now received approval from ADGM’s Financial Services Regulatory Authority to begin operations.

The Masdar Green REIT’s portfolio currently includes four commercial properties within Masdar City, the pioneering sustainable urban development project, and technology and innovation hub, in Abu Dhabi. All of the properties consume approximately 40 percent less electricity and water than comparable buildings in Abu Dhabi – giving them a rating of three Pearls or above on Abu Dhabi’s Estidama Pearl Building Rating System, while one is also LEED Platinum certified. 

“The Masdar Green REIT is the first of its kind in the region and further demonstrates Masdar’s commitment to pioneering sustainable development,” said Abdulla Balalaa, Acting Executive Director, Sustainable Real Estate, Masdar City. “Investors are increasingly looking for ‘responsible’ investment opportunities and evaluate companies based on specific environmental, social and governance (‘ESG’) practices criteria. The Masdar Green REIT gives investors that option by investing in sustainable income-generating real estate assets, with a primary focus in Masdar City. This REIT also provides a vehicle through which third-party, sustainable developers can monetize their assets, attracting both real estate developers to Masdar City, and aspiring local and international sustainable investors.”

Steve Corrin, SEO of Emirates NBD Asset Management, said, “We are delighted to be bringing together two of the UAE’s strongest brand names to work on the Masdar Green REIT, an exciting new investment product for the UAE’s REIT market. The initial portfolio has been created with global ESG principles in mind to offer investors the highest levels of sustainability ratings as well as attractive rental yields in line with investor expectations. Emirates NBD Asset Management, with its long history of institutional real estate asset management in the UAE provides investors with comfort that the Masdar Green REIT will be professionally resourced and operated to international best-practices.”

The Masdar Green REIT will facilitate more sustainable real estate assets coming to market by providing institutional funding to support the future expansion of Masdar City through new sustainable developments. The Masdar Green REIT also marks great progress in bringing the Abu Dhabi Sustainable Finance Declaration to life, which was signed in 2019 by 25 public and private sector entities, including Masdar and the ADGM, and is aimed at establishing a healthy and sustainable finance industry that supports the UAE in attaining the United Nations Sustainable Development Goals.

Emmanuel Givanakis, Deputy CEO of the ADGM Financial Services Regulatory Authority, said, “As an international financial centre, ADGM has been tireless in championing the region’s sustainable finance agenda and is pleased to support the advancement of the UAE’s first green REIT. Working closely with financial and energy industries stakeholders, including Masdar and Emirates NBD, we seek to encourage and facilitate further advancements and increased investments in the field of sustainable finance. The FSRA is committed to providing its business community and partners with the ecosystem and regulatory support to develop and achieve innovative investment solutions across the UAE.”

Currently active in more than 30 countries, Masdar has been advancing the commercialization and deployment of renewable energy, sustainable urban development and clean technologies, to address global sustainability challenges since 2006. In 2018, Masdar signed the first green revolving credit facility in the Middle East, helping to support its investments in global clean technology and sustainable real estate projects.

Masdar, Abu Dhabi’s renewable energy company, has acquired ib vogt GmbH’s shareholding in the 64.1 MWp “Infinity 50” photovoltaic project in Benban, Egypt. Masdar and ib vogt have additionally signed agreements of intent concerning the purchase of ib vogt’s shareholdings in three more solar parks also located in the Benban solar complex, which have a combined volume of 166.5 MWp.

The Infinity 50 solar plant, inaugurated in early 2018, was the first large-scale PV power plant built in Egypt and the first to mark what would later become the Benban Solar Development Complex, one of the largest utility-scale grid-connected solar power complexes in the world. It represents a landmark in the development of renewable energy infrastructure in the MENA region. 

The project was jointly developed, built and has been operated by ib vogt together with its partner Infinity Energy S.A.E. One of only two projects that qualified for the demanding FiT Round 1 program, it is contributing to Egypt’s renewable energy targets under a 25-year Power Purchase Agreement. 

“This strategic investment for Masdar marks our first collaboration with Infinity Energy under the platform our two companies announced at Abu Dhabi Sustainability Week earlier this year – Infinity Power – to pursue renewable energy opportunities in Egypt and elsewhere in Africa. We see numerous opportunities for our partnership in this region and continue to work closely with Infinity Energy on the future success of Infinity Power,” said Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar. “We also thank ib vogt for its professionalism and support on this strategic transaction for our company in Egypt and look forward to engage on other major opportunities with the company.” 

Masdar established the Infinity Power joint venture with Infinity Energy, Egypt’s leading renewable energy developer, to develop utility-scale and distributed solar energy and wind power projects in Egypt and Africa. 

“We are very pleased to be working together with Masdar and to support their partnership with Infinity in continuing the development of the renewable electricity sector in Egypt,” said Anton Milner, Managing Director of ib vogt GmbH. “As the first major utility-scale solar plant in the country, this was a complex undertaking, a group effort from the very beginning and would not have been possible without the absolutely fantastic collaboration of countless parties including our financing partners, suppliers, advisors, governmental and local authorities and the local communities…a very challenging project which has been very well executed and very successful for all the stakeholders.” 

Masdar has participated in the UAE-China Investment Opportunities Webinar, a virtual event organized by the UAE Embassy in Beijing, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), and the Abu Dhabi Investment Office (ADIO). 

Abdulla Balalaa, Director Sustainable Real Estate and Investment Management, Masdar City, gave a presentation on sustainable cities, highlighting how Masdar City has set standards for sustainable urban development. The City’s focus on environmental sustainability also makes good business sense, he explained to the webinar participants, with the carbon footprint for business tenants being 40 percent lower than for comparable “conventional” offices. 

Established in 2008, Masdar City today is home to more than 820 businesses, providing a leading hub for innovation, research and development, and advancing real-world solutions in energy and water efficiency, mobility, artificial intelligence, and other areas.

The webinar also featured a welcoming speech by His Excellency. Dr Ali Obaid Al Dhaheri, the UAE Ambassador to the People’s Republic of China; with speeches from Zhang Yuijing, CCCME President, and HE Dr Tariq Bin Hendi, Director General of Abu Dhabi Investment Office. 

Other presentations were given Khalid Ahmed Mohammed AlMarzooqi, Director of Commercial Activities, Khalifa Industrial Zone Abu Dhabi, and Yimin Zheng, Vice President, China Jiangsu International Economic and Technical Cooperation Group, Chairman of the Board, Jiangsu Provincial Overseas Cooperation and Investment Co., Ltd. Denise Du, Vice President of Zhejiang Jolly Information Technology Co., Ltd., also gave a presentation, followed by Steve Barnett, Executive Director of Business Development, Abu Dhabi Global Market, and Salvatore Lavallo, AgTech Sector Lead, Abu Dhabi Investment Office, who gave a presentation on agriculture technology. 

The UAE is China’s most important trade partner in the Arab world and responsible for 28 per cent of total non-oil trade between China, the world’s second-largest economy, and the region. China and the UAE launched a US$ 10 billion fund in 2015, focusing on sectors of strategic importance.