Masdar green bond issuance continues to underscore the UAE’s leadership in global sustainable finance as Abu Dhabi Future Energy Company PJSC – Masdar announces the successful placement of a new $1 billion green bond, bringing its total green bond program to a substantial $2.75 billion.
Issued in two equal tranches of $500 million, with maturities of 5 and 10 years, and fixed coupons of 4.875% and 5.375% respectively, this issuance demonstrates both Masdar’s financial strength and the growing global appetite for green investments.
Oversubscription Shows Strong Global Investor Confidence
The latest green bond issuance was significantly oversubscribed, drawing a peak orderbook of $6.6 billion. The response came from both regional and international investors, including dedicated green funds, reflecting deep trust in Masdar’s green vision and strategic direction.
Final allocation was heavily weighted toward the global market, with 85% of the allocation going to international investors, and 15% to MENA-based investors. This level of interest highlights Masdar’s ability to attract sustainable capital from around the world.
Tightest Pricing Achieved to Date
The spreads over US Treasuries were set at 80 basis points (bps) for the 5-year tranche and 90bps for the 10-year tranche, making it Masdar’s tightest pricing to date across all its issuances.
This pricing outcome underscores investor confidence in both Masdar’s credit profile and its growing reputation as a global leader in climate finance and clean energy innovation.
CEO: Bond Will Fund Global Clean Energy Transformation
Mohamed Jameel Al Ramahi, CEO of Masdar, emphasized the strategic value of the funds raised. He noted:
“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 most urgent need of investment.”
Masdar has been a key player in pioneering clean energy developments in underserved markets, where financing is most critical. These proceeds will exclusively fund new ‘dark green’ renewable energy projects, ensuring every dollar contributes to reducing global emissions and powering sustainable growth.
Aligned with Masdar’s Green Finance Framework
This bond issuance is fully aligned with Masdar’s updated Green Finance Framework, revised in March 2025, which now includes green hydrogen and standalone battery storage projects among its eligibility criteria.
Mazin Khan, Masdar’s CFO, added:
“This latest green bond issuance 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.”
High Ratings Reaffirm Strong Financial Standing
The issuance was rated AA- by Fitch and A1 by Moody’s, aligning with Masdar’s corporate credit ratings. These ratings reflect the company’s robust financial fundamentals, long-term viability, and strong project execution capabilities across the renewable energy spectrum.
Moody’s reaffirmed a Sustainability Quality Score of SQS1 (Excellent) in April, which is the highest possible for green financing structures, solidifying Masdar’s commitment to top-tier sustainability standards.
Joint Lead Managers of the Issuance
The issuance was managed by a consortium of high-profile institutions including:
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First Abu Dhabi Bank
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Abu Dhabi Commercial Bank
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J.P. Morgan
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ING
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Intesa Sanpaolo
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Bank of China
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DBS Bank
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BNP Paribas
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Crédit Agricole
These institutions brought global reach and deep financial expertise, helping Masdar tap into new markets and investor groups.
A Green Bond Journey Since 2023
Masdar launched its green bond program in 2023, with successive issuances of $750 million and $1 billion in the same and following year. All proceeds have been fully allocated to greenfield clean energy projects, including solar, wind, and energy storage developments.
This latest $1 billion issuance is a major step in achieving Masdar’s strategic objective of installing 100 GW of renewable capacity by 2030, a key part of the UAE’s Net Zero 2050 initiative and the country’s broader vision of climate leadership.
Massive Global Clean Energy Portfolio in the Pipeline
In addition to the green bond issuance, Masdar secured $6 billion of non-recourse financing in 2024 to support over 11 GW of clean energy capacity across 12 new projects in nine countries, reflecting a massive scale-up in its global operations.
Masdar’s ability to raise such significant sums through sustainable finance reflects the urgent demand for capital in combating climate change and transitioning energy systems across the globe.
Strategic Focus: Emerging Markets & New Technologies
A key feature of Masdar’s project pipeline is its strong focus on emerging markets — countries where clean energy deployment is not only crucial for climate goals but also for economic development and energy access.
Masdar’s updated framework also prioritizes next-generation solutions, including:
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Green hydrogen production
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Standalone battery storage
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Hybrid renewable systems
These solutions are critical for energy transition strategies worldwide, particularly in geographies where grid infrastructure remains underdeveloped.
Investor Transparency & Confidence
All of Masdar’s green bond proceeds are subject to strict reporting and transparency guidelines, ensuring investors have full visibility into how their funds are used. Annual impact reports detail:
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Carbon emissions avoided
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Energy capacity installed
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Communities impacted
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Technology types deployed
This accountability ensures that Masdar not only raises capital at scale but also delivers measurable climate impact and investor confidence.
Driving the UAE’s Climate Finance Leadership
Masdar’s continued success in raising green capital reflects the UAE’s rising prominence in sustainable finance. As the country gears up for further COP commitments and net-zero targets, entities like Masdar serve as critical catalysts for:
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Regional energy transition
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Global clean tech deployment
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Investment mobilization toward decarbonization
With the UAE serving as a regional finance and innovation hub, Masdar’s green bond program is a cornerstone of this transformative shift.
Conclusion: $1 Billion to Power a Greener Future
The Masdar green bond issuance is not just a financial event — it’s a statement of intent. With global investor confidence behind it and a clear roadmap for clean energy expansion, Masdar continues to drive climate action at scale.
From emerging economies to high-tech hydrogen projects, every dollar raised will contribute to a cleaner, fairer, and more resilient global energy system.
As countries, corporations, and citizens push for a net-zero future, Masdar proves that sustainable finance isn’t just possible — it’s already happening.
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