Masdar’s $1B green bond was oversubscribed 6.6x, reflecting robust investor confidence and delivering the tightest spreads in its issuance history.
Proceeds will finance new greenfield renewable energy projects, supporting Masdar’s global capacity targets, especially in emerging markets.
Cumulative green bond proceeds now total $2.75B, reinforcing Masdar’s leadership in scaling sustainable finance at industrial levels.
Abu Dhabi Future Energy Company PJSC – Masdar has raised $1 billion through its third green bond, bringing total funds secured under its green bond program to $2.75 billion since 2023.
Issued in two tranches of $500 million each, with 5- and 10-year tenors at 4.875% and 5.375% coupons, the bond attracted an orderbook of $6.6 billion. Investors included dedicated green funds and major regional and international institutions. Allocation split: 85% international and 15% MENA.
“This third issuance demonstrates the continued and growing confidence the investment community places in Masdar’s financial strength and long-term vision,” said CEO Mohamed Jameel Al Ramahi. “The funds raised will be critical in Masdar achieving its portfolio capacity targets and will enable us to support energy transformation across the globe, especially in emerging markets.”
The pricing landed at 80bps and 90bps over US Treasuries, the tightest Masdar has achieved. The issuance follows two previous bonds in 2023 ($750M) and 2024 ($1B)—each fully allocated to greenfield renewable energy developments.
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Masdar also secured $6B in non-recourse financing earlier this year to develop over 11 GW of clean energy capacity across 12 projects in nine countries.
Aligned with Masdar’s Green Finance Framework, the new issuance extends eligibility to green hydrogen and standalone battery storage. In April, Moody’s reaffirmed a top-tier Sustainability Quality Score of SQS1 for the updated framework.
“This latest green bond issuance underscores the overwhelming investor confidence in our financial resilience and strategic direction,” said CFO Mazin Khan. “Masdar is raising sustainable finance on an industrial scale to support new clean energy projects both at home and internationally.”
The bond carries AA- and A1 credit ratings from Fitch and Moody’s, respectively. Joint lead managers included First Abu Dhabi Bank, J.P. Morgan, Bank of China, BNP Paribas, and others.
Masdar continues to position itself as a strategic driver of global energy transition, providing institutional investors with transparent, high-impact opportunities in sustainable infrastructure.
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