Masdar Raises USD 1 Billion via Green Bonds to Power Global Clean Energy Push

Masdar, also known as Abu Dhabi Future Energy Company PJSC, has successfully raised USD 1 billion through its latest green bond issuance, bringing the total raised under its green bond program since 2023 to USD 2.75 billion. 

The issuance was split into two equal tranches of USD 500 million, with maturities of 5 and 10 years, and coupons set at 4.875 percent  and 5.375 percent  respectively. Investor appetite was robust, with the offering attracting USD 6.6 billion in demand, an oversubscription of 6.6 times, signaling strong global confidence in Masdar’s strategy and creditworthiness.

Approximately 85 percent of allocations were made to international investors, with the remaining 15 percent  directed to those in the MENA region. Notably, the pricing achieved was the tightest ever for Masdar, with spreads of 80 basis points and 90 basis points over US . Treasuries for the 5-year and 10-year tranches.

Masdar confirmed that proceeds will be channelled exclusively into new greenfield renewable energy projects, in alignment with its Green Finance Framework. The updated framework, refreshed in March 2025, now includes green hydrogen and standalone battery storage among eligible sectors. It holds a top-tier Sustainability Quality Score of SQS1 (Excellent) from Moody’s.

“This third issuance underscores the growing trust the investment community places in Masdar’s vision and financial strength,” said Mohamed Jameel Al Ramahi, CEO of Masdar. “The funds will accelerate our efforts in building a cleaner energy future, particularly in developing regions where such investments are urgently needed," he noted.

Masdar CFO Mazin Khan added, “We are mobilizing sustainable capital at scale to back energy transformation globally. Investors can be assured their money is driving impact, thanks to our rigorous framework and project selection.”

The green bond complements Masdar’s broader financing strategy, which included US$6 billion in non-recourse financing in 2024 for over 11 GW of clean energy capacity across 12 new projects in nine countries.

The bond is rated AA- by Fitch and A1 by Moody’s, in line with Masdar’s corporate ratings. The joint lead managers and bookrunners for the transaction included: First Abu Dhabi Bank, Abu Dhabi Commercial Bank, J.P. Morgan, ING, Intesa Sanpaolo, Bank of China, DBS Bank, BNP Paribas, and Crédit Agricole.

With this issuance, Masdar reaffirms its role not just as a renewable energy developer, but as a powerhouse in the global green finance ecosystem.