Masdar issues first $600 million blue bond, highest-rated corporate offering globally

Masdar, a leading Abu Dhabi-based energy company, has successfully issued its first "blue bond" as part of its US$6 billion Global Medium Term Note Programme. This US$600 million five-year bond received top ratings of AA- from S&P and Fitch, setting a new benchmark for the highest-rated corporate blue bond globally. The bond, issued on the London Stock Exchange’s International Securities Market, boasts a coupon rate of US$5.875 percent and was converted to euros at a yield of 4.374 percent.

The transaction attracted significant demand, with an orderbook reaching US$1.5 billion and the bond being 2.5 times oversubscribed. The bond aligns with Masdar's updated Green Finance Framework, which now includes eligible blue projects – initiatives aimed at sustainable ocean and water use. Masdar's CFO, Mazin Khan, expressed enthusiasm for the new bond issuance, stating it provides additional opportunities for investors to contribute to the clean energy system.

Since 2023, Masdar has raised $2.75 billion through its bond programme, funding 30 renewable energy projects with a combined gross capacity of over 16 gigawatts across 10 countries. Masdar's updated GFF aligns with international standards set by the International Capital Market Association and the International Finance Corporation, earning a top Sustainability Quality Score from Moody’s.