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Masdar raises US$600 million in a five-year blue bond, 2.5 times oversubscribed

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Green mangrove trees growing in calm, shallow coastal water in Abu Dhabi Finance and Markets
Green mangrove trees growing in calm, shallow coastal water in Abu Dhabi

The AA- rated bond pays a 5.875% coupon, swapped into euros at 4.374%, and takes Masdar's total raised under its bond programme to US$3.35 billion since 2023.

Masdar has raised US$600 million through a five-year blue bond, the Abu Dhabi clean energy company said on 27 October. The bond is rated AA- by S&P and Fitch.

It carries a US dollar coupon of 5.875%, which Masdar has swapped into euros at a yield of 4.374%. The orderbook peaked at US$1.5 billion, making the issue 2.5 times oversubscribed.

Blue bonds raise money for projects linked to oceans and water. This is the first blue bond under Masdar's US$6 billion Global Medium Term Note Programme and its fourth bond offering. It brings the total raised under the programme to US$3.35 billion since 2023.

Before this issue, Masdar had raised US$2.75 billion through its bond programme and allocated US$2.3 billion of it to 30 renewable energy projects with more than 16 GW of gross capacity in 10 countries.

The pricing gives investors a reference point for Abu Dhabi government-related borrowers issuing sustainable debt. For companies working on desalination, coastal protection or offshore projects, it also shows that a market exists for financing labelled as blue.

Sources

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