Abu Dhabi Future Energy Company PJSC – Masdar has today revealed the issuance of an additional $1 billion green bond, elevating the total outstanding under its green bond program to $2.75 billion and strengthening the company’s position as a global leader in sustainable finance.
The bond was issued in two equal tranches of $500 million, featuring tenors of 5 and 10 years, with coupons set at 4.875 percent and 5.375 percent, respectively, according to a statement.
The issuance garnered substantial oversubscription, achieving a peak order book of $6.6 billion, driven by robust demand from both regional and international investors, including specialized green funds. The spreads over US Treasuries were recorded at 80 basis points for the 5-year tranche and 90 basis points for the 10-year, showcasing the most competitive pricing achieved on Masdar’s issuances thus far. The final allocation comprised 85 percent for international investors and 15 percent for MENA investors.
Masdar is widely acknowledged as a frontrunner in sustainable finance, having completed successive green bond issuances of $750 million and $1 billion in 2023 and 2024, respectively. These funds have been fully directed toward new greenfield projects in both developed and developing economies. The company’s green bond program is further supported by its financing activities, which in 2024 included the issuance of $6 billion in non-recourse financing aimed at developing more than 11 gigawatts (GW) of clean energy capacity across 12 new projects in nine countries.
Strong investor confidence
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.”
Mazin Khan, chief financial officer of Masdar, noted: “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 this year, expanding the eligibility criteria to encompass green hydrogen and standalone battery storage projects. Moody’s reaffirmed its Sustainability Quality Score of SQS1 (Excellent), the highest possible rating, for the updated framework in April.
In accordance with Masdar’s corporate credit ratings, the company’s third bond issuance received ratings of AA- from Fitch and A1 from Moody’s. The joint lead managers and bookrunners for the 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.
