Abu Dhabi Future Energy Company “Masdar” has successfully completed its second green bond issuance, raising $1 billion as part of its green financing strategy. This issuance follows the company’s notable success last year with its first $750 million issuance on the London Stock Exchange.

The bonds are divided into two tranches of $500 million each, with maturities of 5 and 10 years and coupon rates of 4.875% and 5.25%, respectively. The subscription process saw overwhelming and unprecedented interest from investors globally and regionally, with registered orders peaking at $4.6 billion, representing an over subscription rate of 4.6 times.

The bonds were allocated 70% to global investors and 30% to investors from the Middle East and North Africa. Mohamed Jameel Al Ramahi, CEO of Masdar, stated, “Our second green bond issuance of $1 billion reflects investor confidence in Masdar’s capabilities and its alignment with sustainability standards. It will support our ambitious plans to expand our renewable energy project portfolio and support the clean energy transition in the sector.”

Masdar’s CFO, Mazen Khan, added, “We are proud to be among the few companies that offer bonds that make a positive impact transparently and audited while committing to environmental, social, and governance standards.”

The proceeds from this issuance will be used to finance new projects that enhance Masdar’s production capacity to reach 100 gigawatts by 2030, focusing on supporting emerging markets and the global south in accessing additional sustainable energy resources.