Masdar secures $1 billion with latest green bond issuance

Masdar, the Abu Dhabi Future Energy Company PJSC, has successfully raised US$1 billion through its third green bond issuance, bringing its total green bond financing to US$2.75 billion since launching the programme in 2023.

The bond was issued in two equal tranches of US$500 million with 5 and 10-year tenors, offering coupons of 4.875% and 5.375% respectively. Investor confidence was robustly demonstrated with the issuance being 6.6 times oversubscribed, achieving Masdar's tightest pricing spreads to date.

The proceeds will be directed exclusively towards greenfield renewable energy projects under Masdar's Green Finance Framework, which recently expanded its eligibility criteria to include green hydrogen and standalone battery storage projects.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, commented: "This third issuance demonstrates the continued and growing confidence the investment community places in Masdar's financial strength and long-term vision."

The bond allocation saw strong international interest, with 85% going to international investors and 15% to MENA investors, reflecting widespread confidence in Masdar's sustainable finance leadership.

Masdar's green bond programme complements its other financing activities, which in 2024 included US$6 billion of non-recourse financing for developing more than 11 gigawatts of clean energy capacity across multiple countries.

Rated AA- by Fitch and A1 by Moody's, the issuance was managed by a consortium of financial institutions including First Abu Dhabi Bank, J.P. Morgan, and several other international banks, further cementing Masdar's position as a global leader in sustainable finance.