Abu Dhabi Future Energy Company (Masdar) has strengthened its position in sustainable finance with the issuance of a $600 million blue bond, the first under its $6 billion Global Medium Term Note Programme.
The five-year bond, rated AA- by S&P and Fitch, is the
highest-rated public blue bond issued globally to date by a corporate,
according to Masdar.
Listed on the London Stock Exchange’s International
Securities Market, the bond carries a 5.875% US dollar coupon and was swapped
into euros at a 4.374% yield, aligning the company’s funding with its European
investment exposure.
The transaction attracted strong demand from regional and
international investors, with the orderbook peaking at $1.5 billion.
The bond was ultimately 2.5 times oversubscribed despite
challenging market conditions.
The issuance follows Masdar’s update to its Green Finance
Framework (GFF) last month to include eligible blue projects, allowing the
company to direct funding towards water-related clean energy initiatives,
including offshore wind.
Eligible projects must support the sustainable use of oceans
and water resources and undergo comprehensive impact assessments to minimise
adverse effects on biodiversity.
Mazin Khan, Chief Financial Officer of Masdar, said: “For
two decades, Masdar has been a driving force in the development, deployment and
commercialization of renewable energy solutions across the world. Our first
blue bond issuance under our updated Green Finance Framework provides yet more
opportunities for investors to join us in building the clean energy system of
the future. This benchmark offering will ensure capital can be delivered where
it will have the most impact, supporting the development of a more resilient
blue and green economy.”
Masdar has raised $2.75 billion through its bond programme
since 2023.
As of the end of 2025, $2.3 billion had been allocated to 30
renewable energy projects across 10 countries, representing total gross
capacity of more than 16 gigawatts (GW).
The updated framework aligns with blue guidance from the
International Capital Market Association and the International Finance
Corporation.
Moody’s reaffirmed its SQS1 (Excellent) rating, the highest
possible Sustainability Quality Score.
Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB,
First Abu Dhabi Bank, HSBC, J.P. Morgan and Société Générale CIB acted as joint
lead managers and bookrunners.
Masdar’s renewable energy portfolio exceeds 65 GW across
solar, onshore and offshore wind, battery storage and hybrid solutions.
The company is targeting 100 GW of capacity by 2030, expanding through investments in strategic markets to support energy security, economic growth and rising global electricity demand. -OGN/TradeArabia News Service
