NBAD launches first Green Bond in the Middle East

National Bank of Abu Dhabi P.J.S.C. (NBAD), the largest UAE bank by assets, is pleased to announce that it successfully priced its debut US$587million 5-year Green Bond due 30 March 2022 (the “Notes”). This transaction is the first ever Green Bond from a Middle East issuer.

The Notes, which will be listed on the London Stock Exchange, priced at a spread of 98 basis points over mid-swaps and pay a coupon of 3% per annum. Issuance was capped to align with NBAD’s existing portfolio of green assets and the proceeds of the Notes will be directly used to fund or refinance environmentally eligible projects within NBAD's Green Bond Framework.

NBAD and HSBC acted as Joint Green Structuring Advisors for the Notes. NBAD, BofA Merrill Lynch, Citi, Credit Agricole CIB, HSBC and MUFG were Joint Lead Managers and Joint Bookrunners on the Green Bond.

Stephen Jordan, Group Treasurer of NBAD, said: “This is another landmark transaction for NBAD and the first ever Green Bond from the Middle East. It yet again demonstrates NBAD’s commitment to pursue innovative financing solutions and to broaden our global investor base.”

Andy Cairns, NBAD’s Global Head of Debt Origination & Distribution, commented “We are honoured to be Joint Green Structuring Advisor and Joint Bookrunner on this the first ever Green Bond from the Middle East. It 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.

NBAD’s Green Bond is the latest example of the bank’s commitment to sustainable business. NBAD was one of the original signatories to the Dubai Declaration in October 2016, in conjunction with the UAE Ministry of Climate Change and Environment, which requires the financial sector to enable a climate-resilient, inclusive green economy. NBAD is also the only bank in the UAE to sign up to the Equator Principles, a voluntary framework for assessing environmental and social risks in projects to support responsible decision-making. Last year also saw NBAD ranked first in the S&P Hawkamah Pan Arab ESG Index, which measures the performance of publicly traded companies in terms of environmental, social and corporate governance.

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