Companies

Masdar Issues $1.685 Billion Green Bonds In Two Years

Abu Dhabi Future Energy Company Masdar, a global clean energy leader, on Monday published its 2024 Green Finance Report, outlining the renewable energy projects financed by Masdar’s green bond issuances and impacts achieved.

Masdar has allocated more than $1.685 billion in green bond proceeds from 2023 and 2024 as of 31 December, to new solar, onshore and offshore wind, and energy storage projects. These deployments are catalysing the development of clean energy across the UAE, Saudi Arabia, the US, the UK, and Germany as well as markets such as Uzbekistan, Azerbaijan and Serbia.

The report said that for every $1 million invested through Masdar green bonds, approximately 3,700 tonnes of CO₂ emissions were avoided every year through beneficiary projects. This brings the total avoided emissions attributed to its green bonds to more than 6.28 million tonnes of CO₂ per year.

Mazin Khan, Chief Financial Officer at Masdar, said that the company’s green finance strategy has been underpinned by disciplined capital allocation, robust ESG integration and transparent reporting.

“We are proud to deploy bond proceeds towards greenfield projects under strict criteria, enabling clean energy progress while maintaining a high level of financial efficiency and investor confidence,” Mazin Khan said.

In March this year, Masdar revised its Green Finance Framework to broaden eligibility to include green hydrogen and stand-alone battery energy storage systems.

Moody’s Investor Services subsequently re-affirmed Masdar’s Sustainability Quality score of SQS1 (Excellent) in its Second Party Opinion, and verified that the Framework is aligned with international best practices including the ICMA Green Bond Principles and the Green Loan Principles.

Following this, demand for Masdar’s $1 billion green bond issuance in May 2025 led to 6.6x oversubscription, with allocation finalised with a split of 85% to international investors and 15% to Middle East and North Africa (MENA) investors. This year’s issuance brings the total amount raised since the company began its green bond program in 2023 to $2.75 billion.

Renewable Projects

In 2024, Masdar made significant progress towards meeting its ambitious target of 100 GW of renewable energy capacity by 2030. Masdar deployed close to $8 billion in equity investments and secured $6 billion in nonrecourse financing in 2024 to develop 11 GW of clean energy across 12 projects in nine countries.

These accomplishments reflect Masdar’s commitment to expanding its renewable energy portfolio through a balanced growth strategy that combines strategic acquisitions and project development. Masdar’s growth was advanced by landmark acquisitions in Greece, Spain and the US, strengthening the company’s presence in Europe and North America, as well as breaking ground on seven major projects worldwide.

These included two BESS projects in the UK, two solar projects in Azerbaijan with a combined capacity of 760MW, and the 1.5GW Al Ajban Solar Project in the UAE.

Upholding its commitment to transparency in sustainable finance, Masdar engaged Ernst & Young to provide a limited assurance review of the allocation of proceeds and selected environmental impact metrics outlined in its 2024 Green Finance Report.

Global Business Magazine

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