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Masdar announced the successful placement of a $600 million five-year blue bond that drew peak orders of $1.5 billion and closed 2.5 times oversubscribed, reflecting robust demand even amid challenging market conditions. The senior unsecured notes, issued under the company’s $6 billion Global Medium Term Note Programme and listed on the London Stock Exchange’s International Securities Market, carry a 5.875 per cent coupon and were priced at 115 basis points over US Treasuries after tightening from initial guidance. Rated AA- by both S&P and Fitch, the offering stands as the highest-rated public corporate blue bond globally to date, according to the Abu Dhabi clean energy developer.
Proceeds from the transaction will finance maritime renewable energy projects, including offshore wind, under Masdar’s Green Finance Framework that was updated in September to incorporate eligible blue projects focused on sustainable water and ocean economy initiatives. The framework aligns with international standards from the International Capital Market Association and the International Finance Corporation guidelines for blue finance. This debut blue bond extends Masdar’s established track record in sustainable debt markets while directing capital toward high-impact marine infrastructure.
Mazin Khan, Masdar’s chief financial officer, said in the announcement, “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.”
The issuance represents Masdar’s fourth bond transaction since 2023 and brings total capital raised through its bond programme to $3.35 billion. Earlier green bond sales totalled $2.75 billion, with $2.3 billion allocated by the end of 2025 to 30 renewable energy projects across 10 countries that deliver more than 16 gigawatts of capacity, the company reported in its investor materials. The latest notes were swapped into euros at a 4.374 per cent yield to better match Masdar’s European project exposure.
Masdar’s overall renewable energy portfolio now stands at more than 65 gigawatts spanning solar, onshore and offshore wind, battery storage and hybrid technologies, with the firm targeting 100 gigawatts of capacity by 2030. The company maintains credit ratings of AA- from S&P and Fitch alongside A1 from Moody’s, supported by a strong balance sheet and diversified funding sources that include shareholder contributions and project-level debt. Ownership is split among ADNOC, Mubadala and TAQA, providing a solid foundation for its international expansion.
Joint lead managers and bookrunners for the blue bond included Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB, First Abu Dhabi Bank, HSBC, JPMorgan and Société Générale, Masdar stated. The transaction settled on October 29 following pricing earlier in the week. This step adds blue finance to the suite of instruments the developer uses to fund its growing pipeline of clean energy developments worldwide.
