UAE-based clean energy-focused developer Masdar announced that it has raised $1 billion through the issuance of green bonds, with proceeds aimed at investing in new renewable energy projects.

According to Masdar, demand for the bonds was strong, with the offering 4.6x oversubscribed. The offering consisted of $500 million each of 5- and 10-year bonds, and final allocations consisted of 70% international investors, and 30% MENA-based investors.

Founded in 2006, Abu Dhabi-based Masdar develops utility scale renewable energy and green hydrogen projects around the world. The company has set goals to scale its global renewable energy capacity to 100 GW, and production of green hydrogen to 1 million tonnes by 2030.

The new issuance follows Masdar’s inaugural $750 million green bond offering in 2023. According to the company, proceeds from the initial offering have been used to fund clean energy projects in emerging markets and the Global South with 3.7 GW in nominal capacity, which are anticipated to mitigate 5.4 million tonnes of greenhouse gas emissions annually when fully operational.

According to Masdar’s Green Finance Framework, eligible categories for use of proceeds from green bond offerings, including solar power, wind power, electricity transmission and distribution, and energy storage. The company said that proceeds for the new offering will be used to invest exclusively in new greenfield renewable energy projects, including several in developing economies.

Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, said:

“Following the successful launch of our first green bond in 2023, our second green bond issuance for USD1 billion underscores investor confidence in Masdar’s financial robustness and its sustainability credentials. The funds will be pivotal in advancing our ambitious portfolio of renewable energy projects, further cementing our role as a key player in supporting an equitable energy transition by increasing energy access in emerging markets and the Global South.”