Abu Dhabi Future Energy Company PJSC – Masdar has announced the successful issuance of a new US$1 billion green bond, further strengthening its position as a global leader in sustainable finance. With this third issuance, the total outstanding under Masdar’s green bond program now stands at US$2.75 billion.
The issuance comprises two equal tranches of US$500 million with tenors of 5 and 10 years, and coupon rates of 4.875% and 5.375%, respectively. Demonstrating robust market confidence, the offering witnessed a peak orderbook of US$6.6 billion, driven by strong demand from regional and international investors, including dedicated green funds.
Spreads over US Treasuries were finalized at 80 basis points for the 5-year tranche and 90 basis points for the 10-year, marking the tightest pricing Masdar has achieved across its green bond issuances. The final investor allocation stood at 85% international and 15% MENA-based investors.
This latest issuance follows Masdar’s earlier green bond successes of US$750 million and US$1 billion in 2023 and 2024, which have been fully allocated to new greenfield renewable energy projects in both developed and emerging markets.
Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, stated: “This third issuance demonstrates the continued and growing confidence the investment community places in Masdar’s financial strength and long-term vision. 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 and developing economies, which are often in most urgent need of investment. All proceeds from our bond program are allocated exclusively to the development of new ‘dark green’ renewable energy projects, giving investors complete confidence as to how their money is being spent.”
In addition to green bond issuances, Masdar’s broader financing initiatives in 2024 included US$6 billion of non-recourse project financing aimed at developing over 11 GW of clean energy capacity across 12 new projects in nine countries.
Mazin Khan, Chief Financial Officer of Masdar, added: “This latest green bond issuance, aligned with Masdar’s Green Finance Framework, underscores the overwhelming investor confidence in our financial resilience and strategic direction. As we look to deliver the equitable energy system of tomorrow, Masdar is raising sustainable finance on an industrial scale to support the development of new clean energy projects, both at home and internationally, giving investors the opportunity to play their part in the green financing agenda.”
Masdar updated its Green Finance Framework in March 2025, expanding eligibility to include green hydrogen and standalone battery storage. In April, Moody’s reaffirmed the framework’s top-tier Sustainability Quality Score of SQS1 (Excellent).
In line with its strong financial standing, Masdar’s green bonds carry credit ratings of AA- from Fitch and A1 from Moody’s. The joint lead managers and bookrunners for this issuance included First Abu Dhabi Bank, Abu Dhabi Commercial Bank, J.P. Morgan, ING, Intesa Sanpaolo, Bank of China, DBS Bank, BNP Paribas, and Crédit Agricole.
With this latest issuance, Masdar continues to lead global efforts in mobilizing capital for renewable energy and climate-focused infrastructure, aligning with international ESG goals and fostering sustainable development worldwide.
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