UAE property developer Aldar Properties (Aldar) has secured an AED 1 billion sustainable financing facility from Abu Dhabi Islamic Bank (ADIB).
ADIB acted as the sole facility provider and Aldar intends to use the proceeds to finance sustainable projects such as green buildings, and property upgrades to enhance energy efficiency, sustainable water management and renewable energy sources.
The financing takes Aldar’s total ESG financing facilities to AED 4.8 billion as the company transitions towards sustainable financing for its projects and investments.
The transaction underscores both entities’ commitment to supporting environmentally beneficial projects aligned with the UAE Net Zero by 2050 strategic initiative.
“The closure of the AED 1 billion Sustainable Finance Facility is a testament to ADIB’s commitment to sustainability and demonstrates how the financial sector can play an active role in expediting the nation’s green transition,” said Mohammed Al Fahim, acting Global Head of Wholesale Banking at ADIB.
“ADIB remains committed to empowering companies to embrace more sustainable practices. ADIB’s ongoing efforts to tackle climate change and enable sustainable projects and initiatives through funding are wholly aligned with our ESG strategy and sustainable finance framework.”
Over the years, ADIB has arranged and taken part in numerous sustainable financing solutions tailored for companies of different sectors and sizes.
The Islamic bank launched its sustainable finance framework as part of its journey to embedding sustainability into the business. The framework establishes criteria and eligibility requirements that determine which projects are labelled “green”, “social”, or “sustainable”.
It will also determine the eligibility of projects for the bank to finance or refinance, including the issuance of green, social and sustainability Sukuks.
