Masdar raised $1 billion in green bonds for ‘dark green’ renewable energy projects
The bond was split into 2x$500 million tranches, with 85% allocated to global investors
With this round, its total green bonds outstanding reached $2.75 billion
Abu Dhabi Future Energy Company Masdar has secured $1 billion in green bonds, attracting a 6.6 times oversubscription with a peak orderbook of $6.6 billion. The funds will be dedicated solely to ‘dark green’ renewable energy initiatives.
The bond was issued in 2 equal tranches of $500 million. Of the total, 85% was allocated to the international investors while the remaining 15% was issued to investors in the MENA region.
It was jointly managed by First Abu Dhabi Bank, Abu Dhabi Commercial Bank, JPMorgan, ING, Intesa Sanpaolo, Bank of China, DBS Bank, BNP Paribas, and Crédit Agricole.
“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,” stated Masdar CEO Mohamed Jameel Al Ramahi.
Masdar says its green bond program is reinforced by its broader financing efforts, including a 2024 issuance of $6 billion in non-recourse funding to support over 11 GW of clean energy capacity through 12 new projects across 9 countries.
It is the company’s 3rd green bond issuance for greenfield renewable energy projects under the Green Finance Framework, which has now been expanded to include green hydrogen and standalone battery energy storage projects.
This round takes Masdar’s total outstanding under its green bond program to $2.75 billion. Previously, in July 2023, it had raised $750 million, followed by $1 billion in green bonds in July 2024 (see Abu Dhabi Future Energy Company Raises $1 Billion).