Masdar raises another $1 billion through green bond issuance

Abu Dhabi Future Energy Company Masdar on Friday announced it has issued another $1 billion green bond, bringing the total outstanding under its green bond programme to $2.75 billion, and reinforcing the company's global leadership position in sustainable finance.

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The bond was issued in two equal tranches of $500 million, with tenors of 5 and 10 years and coupons of 4.875% and 5.375% respectively.

The bond attracted significant oversubscription with a peak order book of $6.6 billion, with strong demand from both regional and international investors, including dedicated green funds.

Spreads over US Treasuries landed at 80bps for the 5-year tranch and 90bps for the IO-year, representing the tightest pricing achieved on Masdar’s issuances to date. Allocation was finalised with a split of 85 percent to international investors and 15 per cent to Mena investors.

Masdar is widely recognised as a global leader in sustainable finance, with successive green bonds of $750 million and $1 billion in 2023 and 2024, which have been fully allocated to new greenfield projects in developed and developing economies.

The company's green bond programme is complemented by its other financing activities, which in 2024 included the issuance of $6 billion of non-recourse financing for the development of more than II gigawatts (GW) of clean energy capacity across 12 new projects in nine countries.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said, “This third issuance demonstrates the continued and growing confidence the investment community places in Masdar's financial strength and long-term vision.