Masdar, the Abu Dhabi Future Energy Company, said on Friday that it has issued an additional $1 billion green bond, increasing the total amount outstanding under its green bond program to $2.75 billion. This announcement further solidifies Masdar’s position as a global leader in sustainable financing.
The bond had coupons of 4.875% and 5.375%, respectively, and was issued in two equal $500 million tranches with tenors of five and ten years. With a high orderbook of $6.6 billion, the bond saw substantial oversubscription from domestic and foreign investors, including specialised green funds.
Spreads over US Treasuries reached their narrowest price on Masdar’s issuances, coming in at 80bps for the 5-year tranch and 90bps for the 10-year. When the allocation was decided, 15% went to Mena investors and 85% went to foreign investors.
With consecutive green bonds of $750 million and $1 billion in 2023 and 2024, which have been entirely devoted to new greenfield projects in rich and emerging countries, Masdar is generally acknowledged as a global pioneer in sustainable financing. In 2024, the business issued $6 billion in non-recourse financing for the development as part of its other financing efforts, complementing its green bond program.
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