Aerospace,
Investing in industries that drive
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"During the year, our active approach to investments and monetizations also saw the platform deploy capital in several new ventures as well as partner with leading Private Equity operators."
Chief Executive Officer,
Aerospace, Renewables & ICT
Strategy in Action
Masdar was the first investor in the UK Government's £400 million Charging Infrastructure Investment Fund (CIIF), with an investment of
which will be managed by Zouk Capital. The CIIF aims to more than double the country's electric vehicle charging infrastructure with 3,000 new rapid charge points by 2024 as part of its ambition to end the sale of petrol and diesel vehicles by 2040.
Strategy in Action
Mubadala successfully monetized its stake in Hyperoptic, the UK's largest gigabit broadband provider. The investment from 2018, intended to allow Hyperoptic to accelerate the growth of its 1Gbps full fiber national broadband network and resulted in the realization of returns to investors while achieving solid business results.
Portfolio Highlights
Sanad Aerotech signed a landmark agreement with Rolls-Royce plc to become a Rolls-Royce Trent 700 Authorised Maintenance Centre.
Through the
(AED 23 billion) agreement, Sanad Aerotech will provide complete overhaul services for Trent 700 engines over nine years. Under this agreement, Sanad Aerotech more than triples the number of Trent 700 engines it services annually.
Portfolio Highlights
Mubadala launched Sanad in 2019, a new industrial champion designed to foster Abu Dhabi's long-term growth in the global aerospace and industrial services sectors.
Building on over three decades of aviation experience, Sanad integrated Sanad Aerotech, Sanad Powertech, and Sanad Capital. The new aviation powerhouse will invest, employ and deploy Fourth Industrial Revolution technologies to transform Mubadala's global offering to customers across the entire aviation value chain.
Portfolio Highlights
In 2019, Masdar signed a Power Purchase Agreement (PPA) and Government Support Agreement (GSA) with the Government of the Republic of Uzbekistan to design, finance, build and operate the country's first public-private partnership (PPP) solar power plant. The signing ceremony highlighted Uzbekistan's goal of developing 5 gigawatts (GW) of renewable energy by 2030.
Chief Executive Officer
Aerospace, Renewables & ICT
In 2019, the Aerospace, Renewables & ICT platform saw its strongest year to date with significant momentum across the portfolio including several major developments at an operational level. We also continued to deploy capital in new, strategic sectors, while monetizing mature assets and investments and proactively managing our portfolio. The progress we have made during the year has delivered strong financial returns, in line with our mandate as a global investment company.
Our Aerospace division realized its vision to elevate the already highly successful maintenance repair and overhaul (MRO) and capital businesses by launching the Sanad group, combining the strong legacy of engineering excellence with the financial capabilities of Sanad Capital. This new organization provides a unified service offering to help customers navigate the demands of the Fourth Industrial Revolution and create new growth opportunities. In Sanad Aerotech’s first deal as a newly branded company, it completed a $6.5 billion agreement with Rolls-Royce for engine maintenance, demonstrating the trust our partners place in us. This confidence in our ability to deliver was also reflected in the continued growth of Strata, our composite aero-structures manufacturing business, which saw major orders and strong traction in new markets while celebrating its 10th year of operations.
Across the ICT space, we saw consolidation across our portfolio as well strategic expansion through new investments, including an agreement with Cologix, the US-based and largest Canadian data center business, to invest up to $500mn.
We also signed a deal with the UAE Ministry of Interior for the Hassantuk project by Injazat, connecting over 4,500 buildings in Abu Dhabi to improve safety through innovative technology solutions connected directly to the city’s civil defense response units. In addition, we made a successful divestment from Hyperoptic, the UK broadband company, at an attractive rate of return.
On the renewables front, Masdar continued to drive forward its highly successful international investment strategy. Taking advantage of historically low borrowing rates, we also helped Dudgeon Offshore Wind Farm close a GBP £1.4 billion financing package, half of which was of privately placed notes with institutional investors.
During the year, our active approach to investments and monetizations also saw the platform deploy capital in several new ventures as well as partner with leading Private Equity investors, such as Riverstone and Arclight. With Arclight, the agreement saw us combine efforts with the Petroleum & Petrochemicals platform and ADIC to leverage our investment position in the fund. At home, we also invested in groundbreaking reverse osmosis desalination plants in the UAE, including the world’s largest and second-largest plants.
Last year was another strong performance across our portfolio. As we look forward, we will continue to build on our strengths of partnership with international leaders, integration into global supply chains and focus on value creation in new and emerging sectors. Our active investment strategy and ability to monetize mature assets at the right time will continue to be central to our approach.
