Abu Dhabi Future Energy Company PJSC, known as Masdar, has raised US$600 million through its first blue bond issuance under its US$6 billion Global Medium Term Note Programme. The five-year bond has been rated AA- by S&P and Fitch, making it the highest-rated public blue bond issued globally by a corporate entity to date. The issuance marks Masdar’s fourth bond offering and expands its sustainable finance activities beyond conventional green financing.
The bond was issued on the London Stock Exchange’s International Securities Market with a US dollar coupon of 5.875%. The proceeds were swapped into euros at a yield of 4.374%, aligning the company’s funding with its investment exposure in European markets. The transaction attracted strong interest from regional and international investors, with the orderbook reaching US$1.5 billion at its peak. The final issuance was 2.5 times oversubscribed, reflecting investor confidence in Masdar’s financial position and long-term growth strategy despite challenging market conditions.
The funds raised through the blue bond will support eligible maritime renewable energy projects, including offshore wind. These investments are intended to contribute to the sustainable use of oceans and water resources while supporting the expansion of clean energy infrastructure. Eligible projects must undergo comprehensive impact assessments to identify and minimize potential adverse effects on biodiversity.
The issuance follows Masdar’s update to its Green Finance Framework last month to include eligible blue projects. The revised framework allows the company to direct capital towards water-related clean energy initiatives and broadens the scope of projects that can receive financing through its sustainable debt instruments.
Mazin Khan, Chief Financial Officer of Masdar, said the company’s first blue bond under the updated framework creates additional opportunities for investors to participate in the development of future clean energy systems. He added that the offering would help direct capital towards projects that support the development of a more resilient blue and green economy.
Masdar has raised US$3.35 billion under its bond programme since 2023, including the latest blue bond issuance. Before this transaction, the company had raised US$2.75 billion through the programme. As of the end of 2025, US$2.3 billion had been allocated to 30 renewable energy projects across 10 countries. These projects represented a combined gross capacity of more than 16 gigawatts (GW), demonstrating the programme’s contribution to expanding renewable energy generation.
Masdar’s updated Green Finance Framework is aligned with blue finance guidance issued by the International Capital Market Association and the International Finance Corporation. Moody’s again awarded the framework an SQS1 (Excellent) Sustainability Quality Score, the highest rating available under its assessment system.
The joint lead managers and bookrunners for the transaction included Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB, First Abu Dhabi Bank, HSBC, J.P. Morgan and Société Générale CIB. The issuance strengthens Masdar’s position in sustainable finance and provides additional funding capacity for its international renewable energy expansion, particularly in offshore wind and other eligible projects linked to marine and water resources.
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