Mubadala pulls the trigger on first green bond issuance: UAE sovereign fund Mubadala has issued a USD 750 mn green bond with an order book surpassing USD 6 bn leading to a whopping 9.1x subscription rate, Wam reported on Friday. Mubadala offered the bonds with a tenor of 10.5 years at a 6.03% yield and coupon rate of 5.875%. The demand came from local, European, Asian, and US accounts, with the majority being first-time investors in Mubadala. The advising banks and companies were not disclosed.

Where’s the money going? The proceeds from the issuance will be funneled towards projects aligned with the Green Financing Network, Wam reports without clarifying the activities or goals of the network. Earlier this month, Mubadala hired banks to organize a series of investor meetings to present its newly established Green Finance Framework, Reuters reported at the time. Through its unit Mamoura Diversified Global Holding, Mubadala selected Abu Dhabi Commercial Bank, First Abu Dhabi Bank, HSBC, and ING to present the framework to investors.

We knew this was coming: Sources told Reuters in April that the UAE federal government, Abu Dhabi, and its sovereign wealth fund Mubadala were looking into issuing green bonds.