Masdar, a leader in sustainable energy, has successfully issued its third green bond, reinforcing its commitment to the global sustainable finance market.
Climate Bond Issuance
The green bond was issued in two $500 million tranches, one with a five-year maturity and one with a ten-year maturity. This new issuance continues Masdar’s work to bring investment into the development of renewable energy projects.
Today that measure—the coupon rate on the first tranche of the bond—stands at 4.875%. By comparison, the second tranche lures those investors in with a much sweeter 5.375% yield. These rates are a testament to the increasing investor demand for sustainable financing options. Masdar’s Green Finance Framework guides the use of proceeds from the bond issuance. This strategy ensures that the funds will be used only to directly finance new renewable energy projects.
Masdar is a very active green bond issuer. In 2023, they passed a $750 million bond, which they plan to follow with a $1 billion bond in 2024. Collectively, these efforts make us better financiers. As of the first half of 2024, we reached $6 billion in non-recourse financing for the physical development of more than 11 gigawatts (GW) of clean energy capacity through twelve projects in nine countries.
The market for that third green bond issuance was hot. At its highest point, the order book jumped to $6.6 billion, demonstrating a vigorous demand from both regional and international investors. International investors were the real winners, taking down 85% of the total allocation. At the same time, investors from the Middle East and North Africa region received the rest, 15%.
Masdar’s CEO, Mohamed Jameel Al Ramahi, expressed that this third issuance reflects growing confidence in the company’s financial strength and long-term vision. Alongside him, Masdar’s CFO, Mazin Khan, highlighted that the bond issuance underscores the resilience of Masdar’s financial standing and its strategic direction in renewable energy.
Most recently, in March 2025, Masdar substantially expanded the scope of its Green Finance Framework. They added green hydrogen and standalone battery storage projects, doubling down on their commitment to developing innovative energy solutions. In May 2025, Masdar announced a partnership with Samruk-Kazyna to develop renewable energy and battery energy storage system projects in Kazakhstan.
These proceeds from this green bond issuance will play an important role for Masdar. Both will further position the firm to meet its new portfolio capacity 2025 goals and accelerate global energy transformation efforts. Beyond strengthening Masdar’s renewable energy infrastructure, this initiative advances global sustainability goals.