Abu Dhabi Islamic Bank (ADIB) has arranged an Dh1 billion sustainable bilateral facility for Aldar Properties PJSC. The financing takes Aldar’s total ESG financing facilities to Dh4.8 billion as the company transitions towards sustainable financing for its projects and investments.
ADIB acted as the sole facility provider and Aldar intends to utilise 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: “We are excited to support Aldar in its effort to decarbonise the real estate industry and extend our long-term relationship to support the company’s dedication to contributing to a low carbon economy. The closure of the Dh1 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. ADIB remains committed to empower 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.”
Faisal Falaknaz, group chief financial and sustainability officer at Aldar, said: “Aldar is pursuing a rigorous programme to achieve net zero by 2050. Partnership is at the core of our approach, and sustainable financing is playing a crucial role in delivering our goals. We are pleased to extend our relationship with ADIB and look forward to making further strong progress on sustainability in the coming years.”
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.