Abu Dhabi Commercial Bank (ADCB), the UAE’s third-largest lender, has priced its debut $500 million green bond that will help it finance projects following environmental, social and governance (ESG) standards.
The five-year bond, which was priced 115 basis points above treasuries, carries a 4.5 per cent coupon rate, ADCB said in a statement on Thursday.
The transaction was 3.8 times oversubscribed, attracting $1.9 billion in orders from local, regional and international investors.
The bond, which will be issued on September 14, follows a global roadshow and reflects confidence in ADCB as well as its approach to managing ESG risks and opportunities, the bank said.
“The successful pricing of the first ADCB green bond is a significant milestone in the bank’s implementation of international best practice in ESG,” said Alaa Eraiqat, ADCB's group chief executive.
“The bank has adopted a green bond framework to provide a long-term platform to support further mobilisation of capital for green projects. We look forward to collaborating with clients and other stakeholders to advance in our shared ambition for a net-zero future.”
Lenders and corporations across the region are increasingly looking to raise financing for ESG and sustainability-linked projects. First Abu Dhabi Bank, along with Dubai’s Majid Al Futtaim Holding, are among the UAE issuers of green financing deals.
Abu Dhabi National Energy Company, better known as Taqa, together with Emirates Water and Electricity Company, also raised $700.8m through its first green bond as it diversifies funding sources to include sustainable financing for projects.
Taqa will use proceeds of the deal to refinance existing debt of Sweihan PV Power Company, the entity set up to build, own and operate Noor Abu Dhabi solar power project, it said earlier this year.
Globally, the issuance of green bonds climbed 87 per cent to $532bn in 2021. However, the value of transaction fell more than 34 per cent in the three months to the end of March to $83.8bn, S&P Global Ratings said in a report, citing Climate Bonds Initiative data.
The rating agency expects sustainability-linked bonds to be the fastest-growing subset of ESG bonds. In 2021, $92bn of sustainability-linked bonds were issued, marking a 989 per cent increase over the previous year.
ADCB said it has embedded ESG into its corporate strategy and has aligned its sustainability approach to the UAE’s ambitions for an inclusive, net-zero economy.
It is committed to provide Dh35bn ($9.53bn) in green finance by 2030, reach net zero in its own operations and reduce financed emissions in line with the UAE government’s net-zero ambitions.
The proceeds of the bond issuance will further support financing of a low-carbon economy in line with criteria set out in the framework.
Initiatives eligible for green loans include projects or companies associated with renewable energy, green buildings, sustainable water and wastewater treatment, clean transport, energy efficiency and pollution prevention and control.
In July, ADCB reported a 12 per cent annual increase in second-quarter net profit, largely driven by higher interest rates and higher non-interest income. The bank's net profit for the three months to the end of June climbed to Dh1.57bn.
Russia's Muslim Heartlands
Dominic Rubin, Oxford
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
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%3Cp%3E%3Cstrong%3EDirectors%3A%3C%2Fstrong%3E%20Amit%20Joshi%20and%20Aradhana%20Sah%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECast%3A%3C%2Fstrong%3E%20Shahid%20Kapoor%2C%20Kriti%20Sanon%2C%20Dharmendra%2C%20Dimple%20Kapadia%2C%20Rakesh%20Bedi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
ABU DHABI ORDER OF PLAY
Starting at 10am:
Daria Kasatkina v Qiang Wang
Veronika Kudermetova v Annet Kontaveit (10)
Maria Sakkari (9) v Anastasia Potapova
Anastasia Pavlyuchenkova v Ons Jabeur (15)
Donna Vekic (16) v Bernarda Pera
Ekaterina Alexandrova v Zarina Diyas
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ESmartCrowd%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3ESiddiq%20Farid%20and%20Musfique%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%20%2F%20PropTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3E%24650%2C000%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2035%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EVarious%20institutional%20investors%20and%20notable%20angel%20investors%20(500%20MENA%2C%20Shurooq%2C%20Mada%2C%20Seedstar%2C%20Tricap)%3C%2Fp%3E%0A
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
MATCH INFO
Burnley 0
Man City 3
Raheem Sterling 35', 49'
Ferran Torres 65'