ADCB issues $650m green bond to support UAE’s net-zero economy 

ADCB issues $650m green bond to support UAE’s net-zero economy 
ADCB issues $650m green bond to support UAE’s net-zero economy 

Thank you for reading the news about ADCB issues $650m green bond to support UAE’s net-zero economy  and now with the details

Jeddah - Yasmine El Tohamy - RIYADH: In a significant step to support the UAE’s net-zero goal, Abu Dhabi Commercial Bank said it has successfully priced a $650 million green bond, with the proceeds designated for financing eligible sustainable assets. 

The issuance, which was priced with a 5.50 percent coupon rate, featuring a spread of 125 basis points above US treasuries, aligns with ADCB’s Green Bond Framework. 

It was oversubscribed by 2.9 times, drawing interest from local, regional, and international investors, with total orders exceeding $1.9 billion.  

The demand underscores the market’s confidence in ADCB’s creditworthiness and the attractiveness of the bank’s sustainability initiatives, according to a statement. 

This marks ADCB’s second environmental issuance, following its inaugural $500 million green bond in September 2022. 

“ADCB’s second green bond issuance is a significant development in the delivery of our climate strategy, which is aimed at financing solutions to tackle climate change in support of the UAE Net Zero by 2050 Strategic Initiative,” Ala’a Eraiqat, group CEO said. 

“As the UAE prepares to host COP28, ADCB stands ready to support customers on their path to success in a net zero economy,” he continued. 

The Bank's solid credit ratings of A/Stable/A-1 from S&P and A+/Stable/F1 from Fitch, as well as its strong ESG ratings with a "AA" rating from MSCI and a "Medium risk" categorization by Sustainalytics, support the green bond’s competitive pricing. 

“We were very pleased with the pricing achieved for our second green bond – this is a strong endorsement of our increasingly ambitious climate strategy and our credit quality,” Robbert Muller, group treasurer of ADCB commented. 

“It is also encouraging to see orders from a diverse group of global investors, reflecting confidence in ADCB and its approach to managing ESG risks and opportunities,” Muller added. 

The bank has pledged to offer 35 billion dirhams ($9.53 billion) in green financing by 2030, which is tied to this issuance. 

According to the ADCB’s Green Bond Framework, the funds will be utilized to finance approved green projects. 

The qualifying green credit portfolio of ADCB had grown noticeably year over year by 61 percent as of June 30, 2023, reaching $1.65 billion. 

Green buildings make up 55 percent of the portfolio’s components, with renewable energy accounting for 26 percent. 

These were the details of the news ADCB issues $650m green bond to support UAE’s net-zero economy  for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.

It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.

NEXT Saudi Arabia, China discuss collaboration in urban development during Beijing meeting

Author Information

I am Joshua Kelly and I focus on breaking news stories and ensuring we (“Al-KhaleejToday.NET”) offer timely reporting on some of the most recent stories released through market wires about “Services” sector. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for Al-KhaleejToday.NET specializing in quicker moving active shares with a short term view on investment opportunities and trends. Address: 838 Emily Drive Hampton, SC 29924, USA Phone: (+1) 803-887-5567 Email: [email protected]