A consortium of Abu Dhabi-based and international energy companies has raised $870.75 million through a long-term green bond issuance to refinance existing debt linked to the Al Dhafra solar power plant, one of the world’s largest single-site solar projects. The transaction highlights the growing role of capital markets in supporting large-scale renewable infrastructure in the Gulf region.

 

Green Bond Structure and Participants

 

The bond was issued jointly by Abu Dhabi National Energy Company (Taqa), Emirates Water and Electricity Company (Ewec), Masdar, EDF Power Solutions, and Jinko Power.

The green bond carries a coupon of 5.794 percent and matures in June 2053. Proceeds will be used to refinance the plant’s existing debt following more than two years of full commercial operations. According to the issuers, the bonds have been certified as representing a fully green asset, reflecting both current performance and long-term environmental impact.

 

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Al Dhafra’s Role in Abu Dhabi’s Energy Transition

 

The Al Dhafra solar PV plant, inaugurated in 2023, has a total installed capacity of 2 gigawatts. It supplies electricity to around 200,000 homes and is expected to reduce Abu Dhabi’s carbon dioxide emissions by more than 2.4 million tonnes annually. This reduction is equivalent to removing roughly 470,000 vehicles from the road each year.

Ownership of the project is split between Taqa, which holds a 40 percent stake, and Masdar, EDF Power Solutions, and Jinko Power, each with 20 percent. The refinancing strengthens the project’s long-term financial structure while freeing up capital for future renewable investments.

 

Strategic Significance for Abu Dhabi and the UAE

 

Executives involved in the transaction described the issuance as a signal of Abu Dhabi’s broader commitment to the energy transition. The refinancing aligns with the UAE’s ambition to scale clean power capacity as electricity demand rises, particularly from data centres and industrial growth.

The country expects total clean energy capacity to exceed 22 gigawatts by 2031, with renewables projected to account for around 35 percent of baseload power. Al Dhafra is positioned as a cornerstone asset within this transition, demonstrating how utility-scale solar can be financed through global debt markets.

 

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Investor Appetite and Financial Coordination

 

The green bond issuance was coordinated by BNP Paribas and HSBC, with Crédit Agricole CIB, MUFG, Standard Chartered, and SMBC acting as joint lead managers and bookrunners.

Bringing fixed-income investors into Abu Dhabi’s power sector is seen as a way to secure competitive long-term capital while broadening the emirate’s investor base. For Ewec, this marks its second solar-focused bond issuance, following the Noor Abu Dhabi green bond launched in 2022.

 

Scaling Capital for Future Renewable Projects

 

Masdar, which has raised more than $2.75 billion through green bonds to date, said the Al Dhafra transaction demonstrates how large, bankable renewable projects can continue to attract international capital. As refinancing reduces financing costs and improves balance sheet flexibility, it allows developers and utilities to redeploy capital into the next generation of solar and clean energy assets.

Taken together, the Al Dhafra green bond reinforces the UAE’s position as a regional hub for sustainable finance, linking long-term infrastructure development with global investor demand for credible, large-scale green assets.