Abu Dhabi Future Energy Company PJSC – Masdar has announced the issuance of a new US$1 billion green bond, further cementing its position as a global leader in sustainable finance. The latest issuance brings Masdar’s total outstanding green bonds to US$2.75 billion, with proceeds allocated exclusively to the development of high-quality renewable energy projects.
The bond was issued in two equal tranches of US$500 million, with maturities of 5 and 10 years, and coupon rates of 4.875% and 5.375% respectively. Strong investor interest drove a peak orderbook of US$6.6 billion, reflecting significant oversubscription. The issuance achieved the tightest pricing to date for Masdar, with spreads over US Treasuries settling at 80 basis points for the 5-year tranche and 90 basis points for the 10-year.
Investor allocation saw 85% directed to international participants and 15% to the MENA region. The offering attracted broad interest from both global investors and dedicated green funds.
“This third issuance demonstrates the continued and growing confidence the investment community places in Masdar’s financial strength and long-term vision,” said Mohamed Jameel Al Ramahi, CEO of Masdar. “The funds raised are vital in helping us meet our portfolio targets and support energy transition efforts globally, particularly in emerging and developing markets.”
Masdar previously issued US$750 million and US$1 billion green bonds in 2023 and 2024 respectively, with proceeds fully allocated to new greenfield renewable energy projects. The company also secured US$6 billion in non-recourse financing in 2024 to develop over 11 GW of clean energy capacity across 12 projects in nine countries.
Mazin Khan, Masdar’s CFO, noted that the latest issuance, aligned with the company’s Green Finance Framework, reinforces investor confidence in Masdar’s strategic direction. “Masdar is raising sustainable finance on an industrial scale to help deliver the equitable energy systems of the future,” he said.
Masdar’s updated Green Finance Framework, revised in March 2025, now includes eligibility for green hydrogen and standalone battery storage projects. The framework received the highest Sustainability Quality Score (SQS1 – Excellent) from Moody’s in April.
The bond is rated AA- by Fitch and A1 by Moody’s, in line with Masdar’s corporate credit ratings. 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.
