Green bond issued by Masdar, a UAE-based renewable energy company, successfully raises one billion dollars due to high market interest.

Offering a blend of written articles, live streams, and in-person seminars aimed at aiding investors in transitioning towards a zero-emission investment portfolio.

, and Administrator

2025 September 17 . 6:12 PM

2 min read

Masdar successfully secures $1 billion for its second green bond, driven by high investor interest.

Green bond issued by Masdar, a UAE-based renewable energy company, successfully raises one billion dollars due to high market interest.

Masdar Raises $1 Billion in Green Bond Issuance for Renewable Energy Projects

Masdar, the Abu Dhabi-based renewable energy company, has successfully raised $1 billion through its second green bond issuance. The funds will be used to advance Masdar's renewable energy portfolio, primarily in developing economies.

The issuance was divided into two tranches of $500 million each, with one tranche having a tenor of 5 years and the other a tenor of 10 years. The 5-year tranche offers a coupon of 4.875%, while the 10-year tranche offers a coupon of 5.25%.

The bond was rated AA- by Fitch and A2 by Moody's, reflecting Masdar's strong creditworthiness. Fitch recently upgraded Masdar's credit rating one notch to 'AA-', with a stable outlook.

Masdar's previous bond issuance had already raised $750 million on the International Securities Market of the London Stock Exchange last year. This latest fundraiser was more than 4.6 times oversubscribed, indicating strong investor demand for Masdar's green bonds.

70% of the investors in the fundraiser were institutional backers, while 30% were from the MENA region. This fundraiser stands in contrast to global green bond market flows, which remain heavily concentrated in developed markets. European issuers currently dominate the global green bond market, accounting for more than half of the overall market.

The proceeds from the bond will fund Masdar's equity commitments to new greenfield renewable energy projects. These projects will increase energy access in emerging markets and the Global South, further cementing Masdar's role as a key player in supporting an equitable energy transition.

Masdar is jointly owned by Abu Dhabi's National Oil Company ADNOC, Abu Dhabi gas company TAQA, and Abu Dhabi sovereign wealth fund Mudabala. The company's goal is to expand its renewable energy portfolio to 100GW by 2030.

Green bond issuance has surged since the introduction of Central Bank rate hikes from 2021 onwards. This trend is expected to continue as more companies and governments turn to green bonds to finance their transition to renewable energy.