Masdar allocates over $1.685b of green bond proceeds

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

More than US$1.685 billion in green bond proceeds from 2023 and 2024 issuances were allocated as of 31st 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 United States, Germany and the United Kingdom, as well as markets such as Uzbekistan, Azerbaijan and Serbia.

The report showed that for every $1 million invested through Masdar green bonds, approximately 3,700 tonnes of CO₂ emissions are 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, “Masdar’s green finance strategy is 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.”

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 percent to international investors and 15 percent to MENA investors. This year’s issuance brings the total amount raised since the company began its green bond programme in 2023 to $2.75 billion.

Masdar’s green bond programme is complemented by broader financing activities, including $6 billion in non-recourse financing in 2024 to develop 11GW of clean energy across 12 projects in nine countries.

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.

WAM