Abu Dhabi Future Energy Company Raises $1 Billion

UAE-headquartered Abu Dhabi Future Energy Company Masdar has raised $1 billion in fresh green bond issuance which it will use to fund new greenfield renewable energy projects. The group targets $3 billion in green bonds to support its goal of achieving 100 GW of renewable energy capacity by 2030. 

Masdar said this was its 2nd green bond issuance and was 4.6x oversubscribed, reflecting strong appetite from regional and international investors. Orderbook peaked at $4.6 billion. 

The issuance comprises dual tranches of $500 million each with 5-year and 10-year tenors and coupons of 4.875% and 5.25%, respectively. Masdar finalized the allocation with an average split of 70% to international, and 30% to investors in the Middle East and North Africa (MENA) region.  

Masdar CEO Mohamed Jameel Al Ramahi said, “The funds will be pivotal in advancing our ambitious portfolio of renewable energy projects, further cementing our role as a key player in supporting an equitable energy transition by increasing energy access in emerging markets and the Global South.”  

Part of the group’s Green Finance Framework, this follows Masdar’s maiden green bond issuance of $750 million on the International Securities Market of the London Stock Exchange (LSE) in 2023.  

Under the framework, Masdar said it has used proceeds to fund 3.7 GW of nominal capacity in emerging markets and the Global South. It is expected to mitigate 5.4 million tons in GHG emissions annually once fully operational.  

In June 2024, Masdar announced one of the largest energy transactions in the EU renewables industry with the acquisition of Terna Energy in Greece for €3.2 billion (see Masdar To Acquire Terna Energy).