Abu Dhabi Future Energy Company “Masdar” announced today the successful completion of its latest green bond issuance, valued at AED 3.67 billion (approximately USD 1 billion), reinforcing its global leadership in sustainable finance. With this latest offering, the total amount raised through Masdar’s green bond program now stands at AED 10.092 billion (approximately USD 2.75 billion).
The issuance is split into two equal tranches of AED 1.83 billion (approximately USD 500 million) each, with tenors of 5 and 10 years and annual yields of 4.875% and 5.375%, respectively.
The offering witnessed exceptional demand from both regional and international investors, including dedicated green funds. At its peak, the order book exceeded AED 24.24 billion (approximately USD 6.6 billion), reflecting strong investor confidence in Masdar’s creditworthiness and market position.
The bond pricing achieved the tightest spreads in Masdar’s issuance history — 80 basis points over U.S. Treasuries for the 5-year tranche and 90 basis points for the 10-year tranche — underlining investor confidence and the company’s stable financial standing.
Allocation of the bonds reflected strong global interest, with 85% going to international investors and 15% to investors from the Middle East and North Africa, demonstrating the broad appeal of this issuance.
Masdar is recognized globally as a pioneer in sustainable finance. The company previously issued green bonds worth AED 2.7 billion (around USD 750 million) in 2023 and now AED 3.67 billion (about USD 1 billion) in 2024. The proceeds from these issuances have been fully allocated to developing new clean energy projects in both developed and developing countries.
This green bond program complements Masdar’s broader financing activities, including a non-recourse financing of AED 16.5 billion (approximately USD 6 billion) in 2024 to support the development of 12 new projects across nine countries, with a combined generation capacity exceeding 11 gigawatts.
Masdar CEO Mohamed Jameel Al Ramahi stated that this third green bond issuance in just three years reflects the growing and sustained confidence investors have in Masdar’s strong financial fundamentals and long-term strategic vision. He emphasized that the proceeds from this issuance will play a pivotal role in scaling the company’s global project portfolio and driving transformation across the global energy sector, particularly in emerging markets and developing economies, which often have the greatest need for such investments.
Al Ramahi further noted that the full proceeds of Masdar’s green bond program will be allocated to the development of new renewable energy projects, focusing on sustainability and environmental protection, giving investors clear insight and confidence in how their capital is being utilized.
He added that proceeds from the 2023 green bond were already deployed by year-end to fund clean energy projects that will deliver a total capacity of 3.7 GW and are expected to avoid 5.4 million tonnes of CO₂ emissions annually once fully operational.
In 2024, Masdar commenced the execution of seven major projects worldwide, including two photovoltaic solar power plants in Azerbaijan with a combined capacity of 760 MW, and the Al Ajban Solar PV project in the UAE with a capacity of 1.5 GW — all fully funded through green bond proceeds.
Masdar CFO Mazen Khan commented that the latest issuance, aligned with Masdar’s Green Finance Framework, reflects investors’ confidence in the company’s financial resilience and its strategic direction. He added that, in its pursuit of building an equitable energy system for the future, Masdar continues to raise sustainable finance at scale to support new clean energy projects both domestically and internationally, offering investors a direct role in advancing the green finance agenda.
Masdar updated its Green Finance Framework in March to broaden eligibility criteria to include green hydrogen projects and standalone battery energy storage systems. In April, Moody’s Investors Service awarded the updated framework an “Excellent” score under its Sustainability Quality Score index — the highest possible rating.
Aligned with Masdar’s overall credit profile, this third bond issuance received a rating of “AA-” from Fitch and “A1” from Moody’s, affirming its financial strength and transparency.
The bond offering was managed by a joint group of global and regional bookrunners and coordinators, including First Abu Dhabi Bank, Abu Dhabi Commercial Bank, JPMorgan, ING, Intesa Sanpaolo, Bank of China, DBS Bank, BNP Paribas, and Crédit Agricole.