Abu Dhabi Future Energy Company (Masdar) has issued a $1bn green bond, increasing its total outstanding green bond programme to $2.75bn.

The bond was structured in two equal tranches of $500m, featuring tenors of five and ten years with coupon rates of 4.875% and 5.375%, respectively.

The issuance attracted significant interest, with a peak order book reaching $6.6bn, reflecting strong demand from both regional and international investors, including dedicated green funds.

The spreads over US Treasuries were set at 80 basis points for the five-year tranche and 90 basis points for the ten-year tranche, marking the tightest pricing achieved by Masdar to date.

The final allocation was split with 85% going to international investors and 15% to Mena investors.

The joint lead managers and bookrunners on the issuance were First Abu Dhabi Bank, Abu Dhabi Commercial Bank, JP Morgan, ING, Intesa Sanpaolo, Bank of China, DBS Bank, BNP Paribas and Credit Agricole

Masdar has established itself as a prominent player in sustainable finance, having previously issued green bonds of $750m and $1bn in 2023 and 2024, respectively. These funds have been fully allocated to new greenfield projects across both developed and developing economies.

In 2024, Masdar also secured $6 billion in non-recourse financing to develop over 11 gigawatts (GW) of clean energy capacity across 12 projects in nine countries.