BAKU, Azerbaijan, May 17. Masdar has issued a new green bond worth $1 billion, increasing its total outstanding green bonds to $2.75 billion, Trend reports.
The latest bond was issued in two equal tranches of $500 million, with maturities of 5 and 10 years and coupon rates of 4.875% and 5.375%, respectively. The offering received strong demand, reaching a peak orderbook of $6.6 billion, with participation from both regional and international investors, including dedicated green funds. Final allocation consisted of 85% to international investors and 15% to those in the MENA region.
The spread over US Treasuries was 80 basis points for the 5-year tranche and 90 basis points for the 10-year, representing the tightest pricing Masdar has achieved to date.
This is Masdar’s third green bond issuance, following earlier offerings of $750 million and $1 billion in 2023 and 2024. All proceeds have been fully allocated to greenfield renewable energy projects in both developed and developing countries.
In addition to the green bond program, Masdar raised $6 billion in non-recourse financing in 2024 to support the development of over 11 GW of clean energy capacity across 12 projects in nine countries.
Masdar’s Green Finance Framework, which was updated in March 2025, now includes green hydrogen and battery storage among eligible project categories. The framework has received a Sustainability Quality Score of SQS1 (Excellent) from Moody’s, the highest available rating.