Masdar Allocates $1.685 Billion in Green Bond Proceeds to Global Renewable Projects

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Representational image. Credit: Canva

Abu Dhabi Future Energy Company PJSC (Masdar) has released its 2024 Green Finance Report, detailing the allocation and impact of its green bond issuances.

As of December 31, 2024, more than US$1.685 billion from Masdar’s 2023 and 2024 green bond proceeds had been deployed to finance new solar, onshore and offshore wind, and energy storage projects across the United Arab Emirates, Saudi Arabia, the United States, Germany, the United Kingdom, Uzbekistan, Azerbaijan, and Serbia.

According to the report, for every US$1 million invested through Masdar’s green bonds, approximately 3,700 tonnes of CO₂ emissions are avoided annually. Cumulatively, projects financed under the program are preventing more than 6.28 million tonnes of CO₂ emissions per year.

Mazin Khan, Chief Financial Officer of Masdar, said the company’s green finance strategy is anchored in disciplined capital allocation, ESG integration, and transparent reporting. “We are proud to deploy bond proceeds towards greenfield projects under strict criteria, enabling clean energy progress while maintaining a high level of financial efficiency and investor confidence,” he said.

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In March 2025, Masdar revised its Green Finance Framework to expand eligibility to include green hydrogen and stand-alone battery storage systems. Moody’s Investors Service reaffirmed Masdar’s Sustainability Quality Score of SQS1 (Excellent) and verified alignment with international standards such as the ICMA Green Bond Principles and Green Loan Principles.

The company’s US$1 billion green bond issuance in May 2025 saw demand exceed supply by 6.6 times, with 85 percent allocated to international investors and 15 percent to MENA investors. The issuance brought the total raised under Masdar’s green bond program since its launch in 2023 to US$2.75 billion.

Beyond green bonds, Masdar secured US$6 billion in non-recourse financing in 2024 to support the development of 11 GW of clean energy capacity across 12 projects in nine countries.

To ensure transparency, Masdar engaged Ernst & Young to conduct a limited assurance review of proceeds allocation and selected environmental impact metrics included in the 2024 Green Finance Report.

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