Abu Dhabi Future Energy Company (Masdar) has issued a $1bn green bond, the latest addition to its green bond programme, now totalling $2.75bn.
It marks the company’s third green bond issuance and underscores Masdar’s efforts in the global sustainable finance market.
Go deeper with GlobalData
Masdar has issued green bonds successively, including a $750m bond in 2023 and a $1bn bond in 2024. These funds have been fully allocated to new greenfield projects in developed and developing countries.
The third green bond was divided into two tranches of $500m each, with five and ten-year tenures and respective coupons of 4.875% and 5.375%.
The issuance witnessed a peak order book of $6.6bn, indicating an oversubscription driven by robust demand from regional and international investors, including dedicated green funds.
The spreads over US Treasuries were 80 basis points (bps) for the five-year tranche and 90bps for the ten-year tranche.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFinal allocations favoured international investors at 85%, with the remaining 15% going to investors from the Middle East and North Africa region.
The proceeds from the third green bond issuance will be allocated solely to greenfield renewable energy projects under Masdar’s Green Finance Framework.
Masdar CEO Mohamed Jameel Al Ramahi stated: “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 the most urgent need of investment.
“All proceeds from our bond programme 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.”
In March 2025, Masdar updated its Green Finance Framework, broadening the eligibility criteria to encompass green hydrogen and standalone battery storage projects.
The company’s green bond programme complements other financing activities, such as the $6bn of non-recourse financing secured in 2024, which will support the development of more than 11GW of clean energy capacity across 12 new projects in nine countries.
The joint lead managers and bookrunners for the issuance included financial institutions such as First Abu Dhabi Bank, Abu Dhabi Commercial Bank, JP Morgan, ING and Bank of China.
Masdar chief financial officer Mazin Khan stated: “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, giving investors the opportunity to play their part in the green financing agenda.”
In May 2025, Masdar partnered with Samruk-Kazyna, the sovereign wealth fund of Kazakhstan, to develop renewable energy and battery energy storage system projects in the country.
