Abu Dhabi Future Energy Company PJSC (Masdar) has expanded its sustainable finance footprint by issuing its inaugural blue bond, raising $600 million under its $6 billion Global Medium Term Note Programme.
The five-year US dollar-denominated bond, listed on the London Stock Exchange’s International Securities Market, carries a 5.875 per cent coupon. To align with its operational assets in Europe, Masdar executed a cross-currency swap to convert the funding into euros at a yield of 4.374 per cent.
The transaction represents the highest-rated public corporate blue bond issued globally to date, receiving credit ratings of AA- from both S&P Global Ratings and Fitch Ratings. The orderbook peaked at $1.5 billion, resulting in the offering being 2.5 times oversubscribed by regional and international institutional investors.
The debt issuance follows a recent update to Masdar’s Green Finance Framework, which expanded the company’s eligible capital allocation criteria to include ocean and water-related projects such as offshore wind development. The revised framework aligns with blue finance guidelines from the International Capital Market Association and the International Finance Corporation, securing Moody’s highest Sustainability Quality Score of SQS1 (Excellent).
Key financial, portfolio, and underwriting details of the transaction include:
- Use of proceeds: Funds will be directed toward eligible blue projects focused on sustainable water resource management and offshore wind generation, subject to environmental impact assessments.
- Cumulative issuance: The deal brings Masdar’s total bond capital raised since 2023 to $2.75 billion. As of year-end 2025, the company had allocated $2.3 billion to 30 renewable energy projects totaling over 16 gigawatts of gross capacity across 10 countries.
- Corporate capacity targets: Supports Masdar’s current operating and pipeline footprint of over 65 gigawatts, advancing its broader commercial target to reach 100 gigawatts of global renewable capacity by 2030.
- Syndicate banks: Joint lead managers and bookrunners for the transaction comprised Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB, First Abu Dhabi Bank, HSBC, J.P. Morgan, and Société Générale CIB.
Mazin Khan, Chief Financial Officer of Masdar, stated that expanding the company’s financing structure to include blue bonds provides institutional investors with direct exposure to offshore wind and marine clean energy assets while funding capital-intensive energy infrastructure.
