Abu Dhabi, UAE — Abu Dhabi Islamic Bank (ADIB) has arranged an AED 1 billion ($272 million) sustainable bilateral facility for Aldar Properties (Aldar).
The financing takes Aldar’s total ESG financing facilities to AED 4.8 billion ($1.30 billion) as the company transitions towards sustainable financing for its projects and investments.
Aldar intends to utilize the proceeds to finance sustainable projects such as green buildings, property upgrades to enhance energy efficiency, sustainable water management, pollution control measures and renewable energy sources.
Mohammed Al Fahim, Acting Global Head of Wholesale Banking at ADIB, said, “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.”
Faisal Falaknaz, Group Chief Financial and Sustainability Officer at Aldar, commented, “Aldar is pursuing a transformational growth strategy and implementing a rigorous program to achieve net zero by 2050.”
In addition to providing this facility for Aldar, ADIB has also arranged and taken part in numerous sustainable financing solutions tailored for companies of different sectors and sizes. ADIB has 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”. The framework will determine eligibility of projects for the bank to finance or refinance, including the issuance of Green, Social and Sustainability Sukuks.