Case study Inaugural green bond supports financing of low-carbon initiatives for a net zero economy
Inaugural green bond supports financing of low-carbon initiatives for a net zero economy
The issuance of an inaugural green bond in 2022 represents a milestone in ADCB’s sustainability journey, combining international best practice with the Bank’s strong market position to mobilise global capital to support financing low-carbon businesses and projects.
The green bond underlines ADCB’s commitment to support the UAE’s transition to an inclusive, net zero economy.
The USD 500 million, five-year Reg S issuance was oversubscribed almost four times after attracting a range of local, regional, and international investors that placed total orders of over USD 1.9 billion. The bond was priced at a spread of 115 basis points above treasuries with a 4.5% coupon rate, reflecting confidence in the Bank and its approach to managing ESG risks and opportunities.
Proceeds support ADCB’s pledge to provide AED 35 billion in green financing by 2030 – in line with criteria set out in a Green Bond Framework adopted by the Bank in 2022. Eligible initiatives include projects or companies associated with renewable energy, green buildings, sustainable water and wastewater treatment, clean transportation, energy efficiency, pollution prevention and control.
ADCB’s Green Bond Framework, which aligns with the UN Sustainable Development Goals (SDGs) and based on the International Capital Markets Association (ICMA) Green Bond Principles, is governed by a cross-functional Green Bond Working Group reporting to an executive-level Group Sustainability Committee, Chaired by the Group CFO.
In accordance with industry best practice, ADCB obtained a ‘Second Party Opinion’ to externally verify the sustainability quality of the Framework and alignment with ICMA’s Green Bond Principles. The favourable pricing for ADCB’s issuance was supported by the Bank’s strong credit ratings of A/ Stable/A-1 from S&P, A+/Stable/F1 from Fitch, “AA” ESG rating from MSCI, and ESG risk score of 21.0 (Medium Risk) from Sustainalytics.
As a result of ADCB’s robust ESG approach, the Bank’s inaugural bond was selected to feature in the Bloomberg MSCI Green Bond Index.
Inaugural green bond supports financing of low-carbon initiatives for a net zero economy
The issuance of an inaugural green bond in 2022 represents a milestone in ADCB’s sustainability journey, combining international best practice with the Bank’s strong market position to mobilise global capital to support financing low-carbon businesses and projects.
The green bond underlines ADCB’s commitment to support the UAE’s transition to an inclusive, net zero economy.
The USD 500 million, five-year Reg S issuance was oversubscribed almost four times after attracting a range of local, regional, and international investors that placed total orders of over USD 1.9 billion. The bond was priced at a spread of 115 basis points above treasuries with a 4.5% coupon rate, reflecting confidence in the Bank and its approach to managing ESG risks and opportunities.
Proceeds support ADCB’s pledge to provide AED 35 billion in green financing by 2030 – in line with criteria set out in a Green Bond Framework adopted by the Bank in 2022. Eligible initiatives include projects or companies associated with renewable energy, green buildings, sustainable water and wastewater treatment, clean transportation, energy efficiency, pollution prevention and control.
ADCB’s Green Bond Framework, which aligns with the UN Sustainable Development Goals (SDGs) and based on the International Capital Markets Association (ICMA) Green Bond Principles, is governed by a cross-functional Green Bond Working Group reporting to an executive-level Group Sustainability Committee, Chaired by the Group CFO.
In accordance with industry best practice, ADCB obtained a ‘Second Party Opinion’ to externally verify the sustainability quality of the Framework and alignment with ICMA’s Green Bond Principles. The favourable pricing for ADCB’s issuance was supported by the Bank’s strong credit ratings of A/ Stable/A-1 from S&P, A+/Stable/F1 from Fitch, “AA” ESG rating from MSCI, and ESG risk score of 21.0 (Medium Risk) from Sustainalytics.
As a result of ADCB’s robust ESG approach, the Bank’s inaugural bond was selected to feature in the Bloomberg MSCI Green Bond Index.