First ever Green Bond from issuer in MENA region
The first Green bond in the Middle East and North Africa region (MENA) region has been issued by one of its leading banks. The green bond recently issued by the National Bank of Abu Dhabi (NBAD), has raised $587 million to finance projects which contribute to the fight against climate change and the protection of natural resources. It is anticipated that projects will focus on renewable energy, energy-efficiency, green transport and waste water treatment. Andy Cairns, NBAD’s Global Head of Debt Origination & Distribution, commented: "This Green Bond illustrates that socially responsible investors are an increasingly relevant liquidity source and I am optimistic that this transaction will establish a blueprint for other Middle Eastern issuers to follow suit and issue Green Bonds and Green Sukuk”.
Eligible projects will be determined according to the Green Bond Principles, a global set of guidelines framing the issuance of such bonds. NBAD was one of the original signatories to the Dubai Declaration in October 2016, which in conjunction with the UAE Ministry of Climate Change and Environment, requires the financial sector to enable a climate-resilient, inclusive green economy. In recognition of NBAD’s existing portfolio of green assets and its commitment to sustainable business, last year the bank was ranked first in the S&P Hawkamah Pan Arab ESG Index. This measures the performance of publicly traded companies in the MENA region in terms of environmental, social and corporate governance.
The new Green bond will be listed on the London Stock Exchange (LSE). A total of 42 green bonds which have raised $11.2bn are already listed in London. With the active and fast-growing community of issuers on its markets, the LSE is ideally suited to support the MENA region’s growth ambitions. A total of 37 MENA companies are already listed on the LSE, with a combined market capitalization of $66bn. So far in 2017, seven international sovereign bonds from the MENA region have listed in London, raising a total amount of $14.4bn.