Emirates NBD’s Sustainability-Linked Loan Financing Bond was issued under the bank’s $20 billion Euro Medium Term Note (EMTN) Programme.
Emirates NBD’s $500 million Sustainability-Linked Loan Financing Bond (SLLB) was listed on Nasdaq Dubai Wednesday, bringing the Dubai-based lender’s total bond value on the bourse to nearly $5.8 billion across nine listings.
ESG-linked bond
Emirates NBD’s SLLB, which was issued under the bank’s $20 billion Euro Medium Term Note (EMTN) Programme, is the world’s first under the new International Capital Market Association (ICMA) and Loan Market Association (LMA) framework, according to a statement by Nasdaq Dubai on Wednesday.
The five-year bond, which is also listed on Euronext Dublin, features a 5.141% fixed coupon rate and matures in 2029. Rating agencies Moody’s and Fitch rated the bond A2/A+.
Proceeds from the bond issue will fund or refinance the lender’s portfolio of Sustainability-Linked Loan (SLL) assets, aligning with its SLLB Framework and meeting the growing demand for ESG-focused financial instruments globally, according to the statement.
Crucial quote
“This not only marks an important milestone in our sustainability journey as a Bank but also serves as a testament to our commitment to supporting the evolving needs of capital markets, investors and our customers for ESG-compliant financial instruments,” said Hesham Abdulla Al Qassim, vice chairman and managing director at Emirates NBD Group.
Big number
$30.4 billion. That’s the total value of ESG-focused issuance on Nasdaq Dubai. Meanwhile, the value of listed fixed-income securities on the bourse totaled $139 billion.
Green bond issuance
In 2023, Emirates NBD issued its first green bonds to raise $750 million in the largest green bond issued by a regional bank. It also executed the UAE’s inaugural ESG-linked trade finance transaction in the manufacturing sector, according to its annual report for 2023.
The global market size of sustainable finance last year reached $5.4 trillion, according to Global Market Insights. Between 2024 and 2032, sustainable finance is expected to post a compound annual growth rate (CAGR) of more than 22%, fueled by rising environmental and social issue awareness among governments and people.
Forbes ranking
Emirates NBD ranks sixth on Forbes Middle East’s list of the region’s 30 Most Valuable Banks 2024 and the Middle East’s Top 100 Listed Companies 2024.
