Abu Dhabi Future Energy Company – Masdar has issued an additional $1 billion green bond, raising its total green bond program to $2.75 billion and strengthening its global leadership in sustainable finance.
The $1 billion bond was issued in two equal tranches of $500 million, with maturities of 5 and 10 years and coupon rates of 4.875 percent and 5.375 percent, respectively.
The bond attracted significant oversubscription with a peak orderbook of $6.6 billion, with strong demand from both regional and international investors, including dedicated green funds.
Spreads over US Treasuries landed at 80bps for the 5-year tranch and 90bps for the 10-year, representing the tightest pricing achieved on Masdar’s issuances to date. Allocation was finalized with a split of 85 percent to international investors and 15 percent to MENA investors.
Mohamed Jameel Al Ramahi CEO – Masdar
“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.”
According to the statement, Masdar is widely recognized as a global leader in sustainable finance, with successive green bonds of $750 million and $1 billion in 2023 and 2024, which have been fully allocated to new greenfield projects in developed and developing economies.
The company’s green bond program is complemented by its other financing activities, which in 2024 included the issuance of $6 billion of non-recourse financing for the development of more than 11 gigawatts (GW) of clean energy capacity across 12 new projects in nine countries.
Mazin Khan, Chief Financial Officer of Masdar, said that, “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, allowing investors to play their part in the green financing agenda,” Khan added.
