Photo Credit: WAM
Abu Dhabi Future Energy Company (Masdar) has successfully raised US$600 million through its inaugural blue bond issuance, marking a major milestone in the company’s sustainable financing strategy. The five-year bond has received an AA- rating from both S&P and Fitch, making it the highest-rated publicly issued corporate blue bond worldwide to date.
The issuance forms part of Masdar’s US$6 billion Global Medium Term Note Programme and was listed on the London Stock Exchange’s International Securities Market.
The bond carries a coupon rate of 5.875% and was swapped into euros at a yield of 4.374%, allowing Masdar to align its financing structure with its growing European investment portfolio.
Strong Investor Demand Despite Market Challenges
The offering attracted significant interest from regional and international investors, with orders reaching US$1.5 billion, representing an oversubscription of 2.5 times the issuance size.
The strong response highlights investor confidence in Masdar’s financial position and its expanding role in the global renewable energy sector, despite challenging market conditions.
Supporting Sustainable Ocean and Water Projects
The blue bond follows Masdar’s recent expansion of its Green Finance Framework (GFF) to include eligible blue projects.
The updated framework enables financing for clean energy developments associated with oceans and water resources, particularly offshore wind projects.
Projects seeking financing under the framework must meet sustainability requirements and undergo environmental impact assessments designed to minimise potential harm to biodiversity and marine ecosystems.
Commenting on the issuance, Mazin Khan, Chief Financial Officer of Masdar, said the company’s first blue bond would create additional opportunities for investors to participate in developing future clean energy infrastructure.
He added that the financing would help direct investment towards projects capable of delivering meaningful environmental benefits while strengthening the blue and green economies.
Masdar Expands Sustainable Financing Portfolio
Since launching its bond programme in 2023, Masdar has raised a total of US$2.75 billion to support renewable energy investments.
By the end of 2025, approximately US$2.3 billion had been allocated to 30 renewable energy projects across 10 countries, representing more than 16 gigawatts (GW) of gross generation capacity.
Masdar’s revised Green Finance Framework follows blue finance guidance issued by the International Capital Market Association (ICMA) and the International Finance Corporation (IFC).
The framework also retained Moody’s SQS1 (Excellent) rating, the highest available Sustainability Quality Score.
Seven financial institutions served as joint lead managers and bookrunners for the transaction: Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB, First Abu Dhabi Bank, HSBC, J.P. Morgan and Société Générale CIB.
Renewable Energy Capacity Targeted to Reach 100GW by 2030
Masdar continues to strengthen its position in international renewable energy markets, with a portfolio exceeding 65GW across established and emerging markets.
Its investments cover solar power, onshore and offshore wind energy, battery storage and hybrid renewable energy technologies.
The Abu Dhabi-based company aims to achieve 100GW of renewable energy capacity by 2030, supported by strategic investments and continued expansion into international markets.
The latest financing initiative is expected to strengthen Masdar’s ability to fund clean energy infrastructure while contributing to global energy security, sustainable economic development and rising electricity demand.
