In a major boost for the global energy transition, Abu Dhabi Future Energy Company PJSC. Masdar has raised $1 billion through its latest green bond issuance, reinforcing its leadership in scaling clean energy infrastructure across emerging and developed markets.
The issuance, which marks Masdar’s third green bond since 2023, attracted overwhelming investor interest, with the offering oversubscribed 6.6 times. The bond was issued in two equal tranches of $500 million with maturities of five and ten years, yielding 4.875% and 5.375%, respectively. The pricing landed at just 80 and 90 basis points over US Treasuries, Masdar’s tightest spreads to date.
The offering drew in $6.6 billion in orders from a diverse mix of global investors, including dedicated ESG funds and institutional heavyweights, with 85% of allocations going to international buyers and 15% to MENA-based participants.
Masdar confirmed that the proceeds will be directed toward financing new greenfield renewable energy projects around the world, including initiatives in emerging markets where clean energy investment is crucial for sustainable development.
“This third issuance demonstrates the continued and growing confidence the investment community places in Masdar’s financial strength and long-term vision,” said Mohamed Jameel Al Ramahi, Masdar CEO. “The funds raised will be critical in achieving our global capacity targets and enabling energy transformation at scale.”
Masdar’s cumulative green bond funding now stands at $2.75 billion, underscoring its expanding role in industrial-scale sustainable finance. The issuance is aligned with Masdar’s Green Finance Framework, which was recently updated to include investments in green hydrogen and standalone battery storage. In April, Moody’s reaffirmed the framework’s top-tier Sustainability Quality Score of SQS1.
Masdar’s financing momentum has not slowed. Earlier this year, the company secured $6 billion in non-recourse project financing to support over 11 GW of clean energy generation across 12 projects in nine countries. The new bond issuance further strengthens its financial toolkit as it accelerates its development pipeline and targets net-zero goals.
“This latest green bond issuance underscores the overwhelming investor confidence in our financial resilience and strategic direction,” said Mazin Khan, Masdar’s Chief Financial Officer. “We are raising sustainable finance on an industrial scale to power a cleaner, more inclusive energy future.”
The green bond carries strong credit ratings of AA, from Fitch and A1 from Moody’s, reflecting Masdar’s financial robustness. A global consortium of top-tier institutions, including First Abu Dhabi Bank, J.P. Morgan, Bank of China, and BNP Paribas, acted as joint lead managers.
Masdar’s growing green bond program forms part of a broader strategic mission to lead global efforts in clean energy deployment. From large-scale solar farms to innovative hydrogen projects and battery storage systems, the company is creating investment opportunities that align institutional capital with high-impact climate solutions.
As the world edges closer to the 2030 climate deadline, Masdar is positioning itself as a critical enabler in the global shift toward low-carbon energy systems, providing not only the infrastructure, but also the capital pathways needed to realise a net-zero future.