Masdar Issues $1 Billion Green Bond to Invest in Greenfield Renewable Energy Projects

UAE-based clean energy developer Masdar has announced raising $1 billion through the issuance of green bonds, with the funds intended for new renewable energy projects. The bonds saw strong demand, being 4.6 times oversubscribed. The offering consisted of $500 million each in 5-year and 10-year bonds, with final allocations going to 70% international investors and 30% MENA-based investors.

Founded in 2006, Abu Dhabi-based Masdar focuses on developing utility-scale renewable energy and green hydrogen projects globally. The company aims to expand its global renewable energy capacity to 100 GW and produce 1 million tonnes of green hydrogen by 2030.

This new issuance follows Masdar’s inaugural $750 million green bond offering in 2023. Proceeds from the initial offering have funded clean energy projects in emerging markets and the Global South, with a nominal capacity of 3.7 GW. These projects are expected to reduce greenhouse gas emissions by 5.4 million tonnes annually when fully operational.

According to Masdar’s Green Finance Framework, proceeds from green bond offerings can be used for solar power, wind power, electricity transmission and distribution, and energy storage. The funds from this latest offering will be invested exclusively in new greenfield renewable energy projects, including several in developing economies.Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:

“Following the successful launch of our first green bond in 2023, our second green bond issuance for USD1 billion underscores investor confidence in Masdar’s financial robustness and its sustainability credentials. 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.”