UAE-based renewable energy developer Masdar announced that it has raised $600 million through its first blue bond issuance, with proceeds aimed at financing marine-based renewable energy projects, including offshore wind.

The issuance follows the release last month of Masdar’s updated Green Finance Framework (GFF), updated to include eligible blue projects, which under the framework must contribute to the sustainable use of oceans and water resources and undergo environmental impact assessments to minimize adverse biodiversity effects.

Eligible blue projects listed in the updated framework include investments in floating solar power, offshore wind power, and the transmission and distribution of offshore electricity to shore.

According to Masdar, the new five-year bond carries an AA- rating from S&P and Fitch, marking the highest-rated publicly issued corporate blue bond globally to date. The company said that the offering was 2.5x oversubscribed, with an order book reaching $1.5 billion.

Mazin Khan, Chief Financial Officer at Masdar, said:

“Our first blue bond issuance under our updated Green Finance Framework provides yet more opportunities for investors to join us in building the clean energy system of the future. This benchmark offering will ensure capital can be delivered where it will have the most impact, supporting the development of a more resilient blue and green economy.”

Joint lead managers and bookrunners on the transaction included Abu Dhabi Commercial Bank, BNP Paribas, Crédit Agricole CIB, First Abu Dhabi Bank, HSBC, J.P. Morgan, and Société Générale CIB.