Abu Dhabi Future Energy Company (Masdar) has announced the successful issuance of a $1 billion green bond, marking the third issuance under its green finance programme and bringing the total outstanding amount to $2.75 billion. The move further solidifies Masdar’s status as a global leader in sustainable finance and clean energy innovation.
The latest green bond was split into two tranches of $500 million each, with tenors of five and ten years carrying coupons of 4.875% and 5.375% respectively. Strong demand from global investors drove the peak orderbook to an impressive $6.6 billion, reflecting significant oversubscription.
Strong Global Demand and Sustainable Investment Appeal
Spreads over US Treasuries were set at 80 basis points (bps) for the five-year tranche and 90bps for the ten-year, representing Masdar’s tightest pricing achieved to date. Notably, 85% of the allocation was made to international investors, with the remaining 15% allocated to MENA-based investors.
Masdar’s green bond programme has consistently attracted investor interest, with previous issues of $750 million and $1 billion in 2023 and 2024 respectively. All proceeds from these bonds have been allocated to new greenfield renewable energy projects, spanning both developed and developing economies.
“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, Chief Executive Officer of Masdar. “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.”
Financing the Future of Global Clean Energy
In addition to the green bond programme, Masdar issued $6 billion in non-recourse financing in 2024, supporting the development of more than 11 GW of clean energy capacity across 12 projects in nine countries. This expansion aligns with the company’s mission to accelerate the global energy transition.
Mazin Khan, Masdar’s Chief Financial Officer, added: “This latest green bond issuance, aligned with Masdar’s Green Finance Framework, underscores the overwhelming investor confidence in our financial resilience and strategic direction. Masdar is raising sustainable finance on an industrial scale, supporting the development of clean energy projects at home and abroad.”
Masdar’s Green Finance Framework was updated in March 2025, now including green hydrogen and standalone battery storage projects among the eligible assets. In April, Moody’s reaffirmed a Sustainability Quality Score of SQS1 (Excellent)—the highest possible rating—for the revised framework.
Masdar’s third bond issuance maintains strong credit ratings: AA- from Fitch and A1 from Moody’s, in line with the company’s overall credit profile.
Global Financial Institutions Support Masdar’s Mission
The green bond was jointly led and managed by an international consortium of financial institutions, including:
- First Abu Dhabi Bank
- Abu Dhabi Commercial Bank
- JP Morgan
- ING
- Intesa Sanpaolo
- Bank of China
- DBS Bank
- BNP Paribas
- Crédit Agricole
Masdar’s commitment to responsible financing continues to position the company at the forefront of sustainable infrastructure development, empowering a greener global future through capital market solutions.
