Masdar secures $1 billion in green bonds

Abu Dhabi Future Energy Company PJSC, also known as Masdar, successfully raised $1 billion through its second green bond issuance under its Green Finance Framework. This follows a previous issuance of $750 million in 2023. The recent bond includes two $500 million tranches with tenors of 5 and 10 years and respective coupons of 4.875% and 5.25%. Investor demand was high, with orders reaching $4.6 billion, indicating strong confidence. The funds will support new renewable energy projects, primarily in developing economies. Masdar targets a renewable energy portfolio of 100 GW by 2030 with this funding. The first green bond funded projects with a total nominal capacity of 3.7 GW, expected to reduce GHG emissions by 5.4 million tonnes annually. Major banks, including First Abu Dhabi Bank and Citibank, were joint lead managers. Masdar’s Green Finance Framework has Moody’s highest rating, and Fitch recently upgraded its corporate credit rating to AA-.