Abu Dhabi Future Energy Company PJSC – Masdar has successfully raised \$1 billion through its latest green bond issuance, marking a significant step in its commitment to expanding renewable energy initiatives globally. The issuance, structured in two equal tranches of \$500 million with maturities of five and ten years, attracted substantial investor interest, culminating in an order book that peaked at \$4.6 billion, reflecting an oversubscription rate of 4.6 times.

The bond's allocation saw a distribution of 70% to international investors and 30% to those in the Middle East and North Africa region. The five-year tranche was priced with a coupon of 4.875%, while the ten-year tranche carried a coupon of 5.25%. These rates underscore Masdar's strong credit standing, with the company's green finance framework receiving the highest possible rating of SQS-1 from Moody's.

Proceeds from this issuance are earmarked for investment in new greenfield renewable energy projects, particularly in developing economies. This aligns with Masdar's strategic objective to achieve a renewable energy portfolio capacity of 100 gigawatts by 2030. The company has been instrumental in advancing clean energy solutions, with projects spanning over 40 countries.

Masdar's Chief Executive Officer, Mohamed Jameel Al Ramahi, emphasized the significance of this financial milestone, stating that the successful bond issuance underscores investor confidence in Masdar's financial robustness and sustainability credentials. He highlighted that the funds will be pivotal in advancing the company's ambitious portfolio of renewable energy projects, further cementing its role in supporting an equitable energy transition by increasing energy access in emerging markets and the Global South.

Chief Financial Officer Mazin Khan reiterated the company's commitment to transparency and impact, noting that Masdar is raising green bonds and other green finance instruments to invest in new dark green projects. He emphasized that this approach is not only a key component of Masdar's investor relations strategy but also a commitment that the company is transparently fulfilling through the publication of audited annual allocation and impact reporting.

This bond issuance follows Masdar's inaugural green bond offering in 2023, which raised \$750 million and was oversubscribed by 5.6 times. The proceeds from the initial bond have been allocated to projects expected to mitigate 5.4 million tonnes of greenhouse gas emissions annually upon full operation.

Masdar's ongoing efforts in green finance are part of a broader strategy to mobilize up to \$3 billion through green bonds to support its renewable energy expansion goals. The company's initiatives are in line with global efforts to accelerate the transition to sustainable energy sources and address climate change challenges.