TLDR:
Emirates NBD issues $500M sustainability bond
Bond aligned with Euro Medium Term Note
Funds to support green, sustainable projects
DUBAI (The Thursday Times) — In a bold move supporting the UAE’s green finance landscape, Emirates NBD has issued a $500 million sustainability-linked loan bond, with proceeds directed toward eco-friendly projects. This issuance, part of its $20 billion Euro Medium Term Note programme, reinforces the bank’s commitment to sustainable growth in the UAE and beyond. The bond, listed on Euronext Dublin and NASDAQ Dubai, marks a significant milestone as Emirates NBD expands its environmental, social, and governance (ESG) initiatives.
Sustainable finance in the UAE
Emirates NBD’s new bond comes at a crucial time as the financial sector shifts toward sustainable investments. The bank has structured the bond with an IPT of Treasuries +125 basis points, underlining investor interest in environmentally conscious finance. Sustainability-linked loans are gaining momentum in the region, especially as government-backed institutions increasingly look to these instruments to drive green initiatives. This move places Emirates NBD at the forefront of this trend, setting a precedent for regional banks.
This issuance wasn’t a solo effort. Emirates NBD collaborated with several financial heavyweights, including HSBC as joint sustainability structuring agent and billing bank, and Emirates NBD Capital as joint lead manager. Together with a group of global banks—First Abu Dhabi Bank, Société Generale, and Industrial and Commercial Bank of China—the issuance highlights the UAE’s focus on sustainable finance through a coalition of global players supporting regional ESG goals.
Funding allocation
Emirates NBD’s SLL Funding Assets Portfolio will allocate the bond proceeds to projects aimed at reducing the environmental footprint, including green infrastructure, renewable energy, and energy efficiency projects. This portfolio, backed by international standards, is designed to support initiatives that align with the UN Sustainable Development Goals. With ESG principles embedded in its structure, Emirates NBD is poised to attract investors seeking long-term sustainable growth.
