ADCB successfully prices $650mn green bond

By Shilpa Annie Joseph, Official Reporter
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ADCB expands to Saudi Arabia

Abu Dhabi Commercial Bank (ADCB) has priced a $650 million green bond, the proceeds of which will be used to finance eligible green assets as outlined in ADCB’s Green Bond Framework.

This strong demand demonstrates the market’s trust in ADCB’s creditworthiness and the appeal of the Bank’s sustainability initiatives. This marks ADCB’s second green bond issuance, building on the success of its inaugural $500 million green bond in September 2022.

According to the statement, “Following an extensive global investor roadshow, the green bond priced at a spread of 125 bps above US treasuries with a 5.50 percent coupon rate. It was 2.9 times oversubscribed, attracting interest from a range of local, regional, and international investors that placed total orders of over $1.9 billion.”

Alaa Eraiqat-ADCB
Ala’a Eraiqat

“ADCB’s second green bond issuance is a significant development in the delivery of our climate strategy, which is aimed at financing solutions to tackle climate change in support of the UAE Net Zero by 2050 Strategic Initiative. As the UAE prepares to host COP28, ADCB stands ready to support customers on their path to success in a net zero economy. The positive response from investors to this issuance reflects the value they see in our approach to green finance. This achievement not only reinforces our commitment to driving positive change but also demonstrates the market’s recognition of ADCB’s credit and ESG strength, as well as our ongoing efforts to contribute to a more sustainable future.”

ADCB’s return to the green bond market reinforces its commitment to both responsible financing and the advancement of sustainable initiatives that support the UAE’s Net Zero by 2050 Strategic Initiative.

“The attractive pricing for ADCB’s green bond is underpinned by the Bank’s robust credit ratings of A/Stable/A-1 from S&P and A+/Stable/F1 from Fitch, as well as strong ESG ratings with an ‘AA’ rating from MSCI and a ‘Medium risk’ classification by Sustainalytics,” as per the statement.

Robbert Muller, ADCB Group Treasurer, said that “this framework aligns with the United Nations Sustainable Development Goals and is based on the International Capital Markets Association (ICMA) Green Bond Principles. With ADCB rapidly expanding its portfolio of sustainable assets, green bond issuances are now an established part of our funding strategy.”

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